Financial news

The Malta Stock Exchange index gained 22 points yesterday, closing at 3,368.066, on robust volume of 234,080 shares across 41 deals. Financial stocks were the day’s winners while technology based issuers fell in the session. Middlesea Insurance had the best performance of the day, adding 8c, or 9.4 per cent, to close at €0.93 in five deals for a total of 5,427 shares. Late in the day on Friday, Middlesea announced that its board of directors had been informed that an agreement had been reached between Mapfre Internacional and Munich Re – two institutional shareholders of the local insurance company’s shares – in which Mapfre will be acquiring Munich Re’s current 19.9 per cent shareholding in Middlesea, subject to certain regulatory approvals. If concluded, the agreement will see Mapfre increase its aggregate shareholding in Middlesea to 50.98 per cent. Bank of Valletta plc added 1c, or 0.4 per cent, to end the session at €2.890 in moderate volume of 13,969 shares across nine trades. HSBC Bank Malta plc, meanwhile, added 4c, or 1.3 per cent, to close at €3.040 in nine trades for a total of 20,280 shares. In the technology sector, RS2 Software plc shed 1c9, or 3.7 per cent, to finish at €0.500, in very heavy volume of 123,000 shares across four trades.

Go plc shares also lost market value yesterday, dropping 1c9, or 1.4 per cent, to end at €1.330 on robust volume of 68,030 shares. Other shares to trade in the equity market include International Hotel Investments plc, which ended unchanged at €0.700 in three deals for a total of 2,143 shares.

Loqus Holdings plc also saw action, but also closed unchanged, closing at €0.161 in a single deal of 1,231 shares.

The week ahead - Economic indicators for week starting May 2

This week in the United States, two key data figures are due to be released – the Institute for Supply Management’s manufacturing index and the labour market report. Market participants expect the ISM index to decline to a level of 59.5 for the month of April over the 61.2 registered for the month of March. This comes on the back of lacklustre performance by the three regional purchasing manager’s indices, namely the Empire State Index, the Richmond Fed Index and the Philadelphia Fed index. In the labour market meanwhile, economists are expecting an increase of 185,000 in net payrolls for April, somewhat lower than the 216,000 registered in March.

In the eurozone, flash estimates for the Purchasing Managers Index composite will be released tomorrow while the European Central Bank will hold its rate setting meeting on Thursday. Markets are expecting the ECB to keep interest rate hikes on hold this time but are anxious to see whether the central bank hints at a rate hike in June or decides to wait until the third quarter of the year. Earnings season in the 17-nation area, meanwhile, is in full swing, and so far a clear majority of companies to report so far have beat analysts’ expectations, providing a boost to markets.

In the UK, PMI construction figures for the month of April are due to be released, while the Bank of England (BoE) is scheduled to meet on Thursday to announce interest rates.

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.