Financial news

The Malta Stock Exchange continues to be marred by a lack of activity as trading volume was subdued yesterday. Only five equities managed to see action in the session as 44,885 shares exchanged hands across 22 deals. The index finished marginally higher, gaining two points, or less than 0.1 per cent, to close at 3343.321.

Middlesea Insurance plc maintained its upward momentum, gaining another 3c, or 2.7 per cent on the day, to close at €1.15 in moderately robust volume of 24,110 shares across six deals. Shares in the Floriana-based insurance company have been surging of late, gaining almost 10 per cent in the last two trading sessions alone.

Bank of Valletta plc gave back some of the gains it made in Tuesday's session by dropping 0c6, or 0.2 per cent, yesterday to finish at €3.005 in six trades of 8,152 shares.

HSBC Bank Malta plc, whose shares have witnessed a marked, uncharacteristic lack of trading in the last few sessions, made a meek appearance yesterday by gaining 0c1, or less than 0.1 per cent, to close at €2.831 on slight volume of 400 shares in a single deal.

After Tuesday's poor performance where they lost 8c, or 4.2 per cent, Go plc's shares stabilised yesterday and closed unchanged at €1.85 in a single trade of 773 shares.

The other equity to trade on the day, yet also close unchanged, was the local airport operator, Malta International Airport, which ended the session at €1.58, as 11,450 shares exchanged hands across eight deals.

Weekly eurozone economic review

In the eurozone, the unemployment rate held stable at 10 per cent in May, its highest level in almost 12 years. Meanwhile, the rate for April was revised downward to 10 per cent from the previously reported 10.1 per cent. This might signal that labour market conditions may have stopped deteriorating.

In the manufacturing sector, the Purchasing Managers Index (PMI) reading was left unchanged from an earlier estimate of 55.6, but was slightly down from a reading of 55.8 in May. In the meantime, the PMI for the services sector was revised slightly up to a reading of 55.5 from a preliminary estimate of 55.4 but this was still below May's 33-month high of a reading of 56.2. The composite index based on a survey of the 16-nation common currency area of purchasing managers in both industries also held steady at a reading of 56.

On a positive note, retail sales figures rose modestly during May, by 0.2 per cent, after a sharp decline of 0.9 per cent in April. On a yearly basis, retail sales increased by 0.3 per cent since May. This data continues to show weakness in consumer spending and a fragile economic recovery.

Finally, in its second estimate, Eurostat confirmed that economic growth in the first three months of 2010 was 0.2 per cent quarter-on-quarter, and 0.6 per cent on the year. Inventories were upwardly revised to contribute one percentage point to overall quarterly growth, more than the 0.8 per cent which was previously reported.

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.