Financial news

The Malta Stock Exchange started of the week in positive territory as the index gained more than 25 points to close at 3562.705, up 0.7 per cent.

6pm Holdings plc was the day's biggest mover as shares in the IT solutions provider advanced 3c3, or 6.6 per cent, to end the day at £0.53 in a single trade of 6,000 shares.

International Hotel Investments plc also had an encouraging session as its shares gained 3c, or 3.7 per cent, to close at €0.85 in two trades of 12,015 shares.

The local retail bank, Bank of Valletta plc, was the only other advancer yesterday as its shares closed 2c higher, to finish at €3.39, or 0.6 per cent above its Friday closing price. Middlesea Insurance plc, meanwhile, continued to give up some of the gains it witnessed last week, and closed 0c2 lower, to finish at €0.878. This is the second session in a row of losses for the Floriana-based insurer, whose stock shot up over 17 per cent last week after the company released a positive trading statement for the first quarter of 2010.

Shares to trade in the session, yet failed to register a change it their closing prices were Go plc, which closed at €2.12, Malta International Airport which finished at €3.15, and Lombard Bank Malta plc, which closed at €2.92. After the close of Monday's trading session, Lombard Bank Malta plc announced that its board of directors will be meeting on August 24 to consider and approve the group's financial statements for the six months ending June 30.

The week ahead - Economic indicators for week starting May 24

In the US, after the publication of existing home sales yesterday, new home sales are likely to be driven higher by the imminent expiration of the homebuyers' tax credit. Durable goods orders should show continued improvement as the manufacturing sector continues to recover. The confirmation of the Gross Domestic Product (GDP) is expected to remain unchanged, with the consumer and inventories providing the majority of support. Personal income is likely to see further improvement, with the increase in absolute employment and hours worked offsetting flat month on month wages. Consumer confidence from the Conference Board and University of Michigan will see little upward progress while unemployment remains near double digits.

This week will be relatively quiet for economic releases in the euro area. Industrial new orders are expected to register strong gains, on the basis of the already available country-specific results. The main focus will be the confirmation of the first quarter 2010 GDP in Germany. In the meantime, Germany's inflation figure for May as measured by the Consumer Price Index (CPI) is expected to increase mildly compared to the preceding month. The German IFO Business Climate Survey, also for the month of May is expected to be released this week.

In the UK, economic growth, also for the first quarter of 2010, as measured by the GDP, is largely expected to be revised upwards to a reading of 0.3 per cent, from the previously reported 0.2 per cent. The release of the components for this figure will give an idea of the factors which contributed to this revision. Finally, the GfK consumer confidence survey is also expected to be released later on this week.

This article has been prepared by Bank of Valletta plc (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.