Financial News

The Malta Stock Exchange Index fell more than 87 points, or 2.5 per cent, to close out yesterday’s session at the 3,353.942 level in moderately light volume of 86,638 shares across 20 deals.

The sole gainer in the day was the stock of RS2 Software plc, which added another 3c, or 6.0 per cent in the day to close at €0.530 in continued robust volume of 39,135 shares across four deals. On Wednesday, RS2 climbed 15c, or 42.9 per cent on strong volume of 58,665 shares across 13 trades. Late in the day on Tuesday, RS2 released its operating results for the financial year ended 31 December 2010. The group earned a pre-tax profit for the year of €1.6 million versus €0.4 million earned in 2009. The gain in profit was due to an increase in top-line revenue of €1.6 million, to €7.5 million from €5.9 million a year ago.

International Hotel Investments plc was the day’s biggest mover as its shares fell hard, dropping 13c1, or 15.8 per cent, to end at €0.699 in a single deal of 700 shares.

In the banking sector, Bank of Valletta plc shed 1c, or 0.3 per cent, to close the session at €2.890 in six trades of 7,083 shares.

HSBC Bank Malta plc closed unchanged at €2.960 in three trades for a total of 9,220 shares.

Also in banking, Lombard Bank plc, ended the day flat as well, closing at €2.950 in two deals for a total of 26,500 shares.

In the telecommunications sector, Go plc shares ended the day at €1.450, unchanged from Wednesday’s close, in four deals for a total of 4,000 shares.

Weekly US economic review

Britain’s jobless rate fell unexpectedly for the three months ending in February as the number of people in work jumped. The International Labor Organisation’s (ILO) unemployment rate index of 7.8 per cent, versus eight per cent for the previous three months, came as a welcome sign to the UK government that firms are feeling more confident about hiring. The number of people without a job on the broad ILO measure fell by 17,000 in the three-month period which ended in February, to 2.480 million. That reduction reduced the overall employment figure to below analyst’s forecasts of eight per cent. In addition, the number of individuals in employment rose by 143,000 in the same period, which is the largest increase since September 2010.

Meanwhile, British consumer price inflation (CPI) for March also fell unexpectedly, after a month-on-month decline in the cost of food and drink outweighed higher housing and utility costs. The CPI index registered the first decrease since July last year, coming in at 0.3 per cent, providing the Bank of England with much-needed reassurance that inflation was not spiraling out of control, even if it has continued to be higher than the BOE’s target of two per cent since December 2009. Analysts were expecting an increase of 0.6 per cent for the month. On a yearly basis, consumer prices rose to 4.0 per cent last month, its lowest annual rate of increase since January 2011.

The Bank of England’s (BOE) Monetary Policy Committee (MPC) last week left its key lending rate unchanged at 0.5 per cent, while leaving the six of its asset-purchase programme unchanged at €200 billion ($326.8 billion). The decisions were widely expected.

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.