Financial news

The Malta Stock Exchange managed to see its first positive session in many as the index gained more than 11 points to finish the day at the 3426.235 level as banking stocks finished mixed and Go plc lost ground.

Shares in the local telecom company, Go plc, dropped 5c, or 2.5 per cent, in a single trade of 3,000 shares to close at €1.95.

Also finishing on the downside was Lombard Bank plc, which lost 6c1, or 2.1 per cent, to close at €2.919 in three trades of 6,788 shares.

Other banking stocks bucked Lombard's downward finish and managed to post gains on the day. HSBC Bank Malta plc, advanced 6c, or 2.1 per cent, to end many sessions of losses and finish at €2.88 in three trades of 8,100 shares. Bank of Valletta plc shares also closed up, adding 1c, or 0.3 per cent, to close at €3.28 in eight trades of 3,950 shares.

FIMBank plc, meanwhile, was trading down for much of the day yet managed to end the session unchanged at €1.01 in heavy volume of 99,399 shares.

In the tourism sector, International Hotel Investments plc, lost 0c5, or 0.6 per cent, to finish at €0.82 in four trades of 12,000 shares.

The other stock to trade on the day but failed to register a change in its closing price was Middlesea Insurance plc, which finished unchanged at €0.90 in five trades of 5,500 shares. Shares in the Floriana-based insurer have been climbing steadily as of late since coming off their recent low of €0.63 last December.

Weekly US economic review

This week features numerous indicators in the US. After the Import Price Index yesterday, the Empire State Manufacturing Index and the NAHB housing market index releases will follow. Both Producer Price Index (PPI) and Consumer Price Index (CPI) should trend lower due to a fall in energy costs, while the core release, which excludes energy and food, shows little sign of upward pressure. Building permits and housing starts should have developed positively on the whole in May. In the manufacturing sector, both industrial production and capacity utilisation should show continued improvement but have a long way to go before inflationary pressures become a consideration.

In the eurozone, after the release of industrial production figures yesterday, the ZEW investor sentiment survey is likely to have weakened further on the back of the crisis in the region. In the meantime, the flash CPI estimate of 1.6 per cent is expected to be confirmed in the final release for May, the highest rate of inflation since November 2008 - as food inflation continues to rise and core inflation rebounds from its April low. Other economic indicators for the week ahead include eurozone employment figures for the first quarter of this year and construction output and trade figures, both for the month of April.

In the United Kingdom, after the release of economic forecasts on Monday, ahead of the June 22 Budget, CPI is expected to have risen by 0.4 per cent in May over the previous month, lowering the year-on-year figure to 3.5 per cent. The May labour report is likely to show unemployment fell by a further 10,000, keeping the unemployment rate unchanged at eight per cent. May retail sales should have risen on the back of warm weather, which is likely to have encouraged spending.

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.