Financial news

The Malta Stock Exchange index finished marginally higher, gaining less than a single point, to close at 3,328.535. Trading volume in the equity market was weak as just 51,310 shares across 25 deals were traded.

Middlesea Insurance plc shares suffered the day’s biggest loss, dropping 4c, or 4.5 per cent, to end the day at €0.850 in a single trade of 500 shares.

Go plc stock also suffered losses, shedding 3c, or 2.2 per cent, on robust volume of 30,165 shares across nine deals.

In the banking sector, HSBC Bank Malta plc shares gained 2c, or 0.7 per cent, and finished the session at €2.970, in six deals for a total of 7,854 shares.

Also closing higher were the shares of Simonds Farsons Cisk plc, which gained 4c, or 2.2 per cent, to close at €1.840 in relatively light volume of 2,549 shares across two deals.

Bank of Valletta plc shares were the sole equity in the day to close unchanged, ending trading at €2.850 in relatively light volume of 10,242 shares across seven deals.

After a day of negative trading on Wednesday, yesterday’s session in the corporate bond market finished mostly mixed as three of the seven bonds to trade in the day closed higher while two ended lower. The 4.8% Bank of Valletta Plc Sub € 2020 issue closed €0.300, or 0.3 per cent higher, and ended at €101.500 in a single deal of €20,000 nominal. The 4.6% HSBC Bank Malta Plc € 2017 bond, meanwhile, dropped €0.250, or 0.3 per cent, to close at €101.750 in three deals for a total of €55,000 nominal.

Weekly US economic review

Britain’s retail sales rose unexpectedly in March, helped by stronger food and automotive fuel sales. The Office for National Statistics said retail sales volumes rose 0.2 per cent last month after dropping by a revised 0.9 per cent in February. Economists had expected a decline in retail sales of 0.4 per cent for the month. Last month’s figures may provide assurance to Bank of England policymakers that consumer demand is stabilising.

The UK’s economy made an anemic recovery in the first quarter of 2011, as the country’s GDP inched up 0.5 per cent, versus a 0.5 per cent decline at the end of 2010, adding fuel to speculation that, despite the rise in retail sales noted above, UK interest rates look set to stay at record lows for some time to come. The weak quarterly growth was hurt by the biggest quarterly drop in construction since the first quarter in 2009 as well as a sharp drop in utilities output – both often volatile sectors. Yet the figure was aided by the largest quarterly rise in services output since the fourth quarter of 2006.

The nation’s public sector net borrowing figures for March were also released by the ONS. Last month’s figure came in at a higher than expected 24.8 billion pounds, 14.4 billion more than economists were expecting and 17.8 billion more than the previous month of February.

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.