Financial news

The Malta Stock Exchange was relatively quiet yesterday as shares finished mixed and volume remained light with the index losing more than nine points, or 0.3 per cent, to close at the 3516.224 level.

Bank of Valletta plc was the big mover on the day, closing down 4c, or 1.2 per cent, to close at €3.37 in thirteen trades of 13,494 shares. The best unsatisfied bid at the end of the day was at €3.30 for 5,610 shares while the best unsatisfied offer was for 650 shares at €3.369.

Meanwhile, investors decided to take some profits in Maltapost plc yesterday, dropping the local postal operator's shares price to €0.848, or down 0.2 per cent, in two trades of 8551 shares. Maltapost's plc shares have been surging of late, gaining six per cent in the last 10 trading sessions. The best unsatisfied bid and the end of the day stood at €0.800 for 6,000 shares while the best unsatisfied offer stood at €0.845 for 5,000 shares.

Also in the banking sector, contrary to BOV, HSBC Bank Malta plc managed to see its share price increase yesterday, albeit marginally, moving up 0c1, or less than 0.1 per cent, to close at €3.081.

Other shares to have traded yesterday but closed unchanged were Loqus Holdings plc, which closed at €0.20 in a single trade of 1000 shares, and Malta International Airport plc, which ended the session at €3.20 in four trades of 2100 share

Weekly eurozone economic review

In the eurozone, attention was focused on Greece's medium-term financing risks due to its high debt burden. According to the European Union (EU) the country's budget deficit last year was worse than previously forecasted. In fact Greece's deficit was upwardly revised to 3.6 per cent of Gross Domestic Product (GDP) in 2009 from the previously reported 12.7 per cent. Standard and Poor's rating agency on Tuesday, downgraded Greek's sovereign rating by three notches to BB+ with a negative outlook. Meanwhile, the rating agency also downgraded Portugal from A+ to A- with a negative outlook. The total budget shortfall for the 16-nation euro region widened to 6.3 per cent of GDP, which was led by Greece and Ireland. This was more than double the EU's three per cent limit in 2009 and the biggest since the euro introduction in 1999.

On a positive note, the Purchasing Managers Composite index, based on both manufacturing and service industries rose to a reading of 57.3 in April from 55.9 in March. The recovery in the manufacturing sector was led by increased orders from Asian countries, as the index in this sector grew at its fastest pace since the middle of 2006. The dominant services sector, recorded the eighth month above the 50.0 mark reading which divides growth from contraction.

Meanwhile, demand for intermediate goods such as car engines, drove orders to industrial companies to increase 1.5 per cent in February. This was above economists' forecasts and compares well against the 1.6 per cent decline recorded the previous month. Finally, an index which measure consumer sentiment in the euro-area, although still in negative territory, rose to a reading of 15.2 in April from 17.3 in March.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.