Financial news

The Malta Stock Exchange Index gained just under six points, or 0.2 per cent yesterday, to close at 3,310.205, as trading was relatively thin. Twenty three trades were executed for a total of 65,793 shares across five equities.

Middlesea Insurance plc was, again, the market’s high flyer, adding another 2c7, or 2.7 per cent yesterday, closing at €1.030 in two deals for a total of 8,000 shares. On Tuesday, Middlesea shares added 1c3, or 1.3 per cent, on volume of 5,846 shares across four deals.

GO plc shares managed to close in positive territory yesterday, adding 1c, or 0.8 per cent, to close at €1.300 in eight deals for a total of 8,754 shares.

Also closing higher were the shares of Bank of Valletta plc, which added a marginal 0c5, or 0.2 per cent, and ended at €2.810 in moderate volume of 21,289 shares across six deals. Also trading in the day yet closing unchanged were the stock of HSBC Bank Malta plc, and International Hotel Investments plc, which closed at €2.940 and €0.700, respectively, on volume of 26,750 shares and 1,000 shares, respectively.

The corporate bond market finished mostly lower as six of the eleven issues to trade in the session closed lower, while three ended higher. The seven per cent MIDI GBP 2016-2018 issue suffered the day’s biggest loss, dropping €3.000, or 2.9 per cent, to close at par, or €100.000, in two deals for a total of €25,000 nominal. Finishing considerably higher was the 6.5 per cent International Hotel Investments Plc €2012-2014 bond, which gained €6.000, or 6.5 per cent, to close at €98.000 in a single deal of €9,600 nominal.

Weekly eurozone Economic Review

The European Central Bank held interest rates at 1.25 per cent yesterday, as expected by the majority of market participants, despite rising inflation fears. ECB president Jean-Claude Trichet said that the ECB may increase interest rates while maintaining its non-standard measures of supplying banks with unlimited liquidity in order to support markets. “The ECB has indicated clearly that interest-rate increases could perfectly well take place independently of the timing of the phasing out of the non-standard measures – if those non-standard measures continue to be fully justified by the situation”, Mr Trichet said.

The central bank signalled that it will wait until after June to increase borrowing costs again as policy makers may wish more time to assess the strength of the 17-nation euro economy.

The Markit eurozone Services Purchasing Managers’ Index, which measures changes in activity of service sector firms ranging from banks to restaurants, slipped to a level of 56.7 in April from the previous month’s near 4-year high of 57.2. A figure above 50 indicates growth in the sector.

Germany’s exports, meanwhile, surged far more than expected in March, as seasonally adjusted exports gained 7.3 per cent for the month over February. March’s figure far outpaced analysts’ expectations of a 0.8 per cent increase for the period, signalling that Europe’s largest economy is likely to have had robust growth for the first quarter of the year. On an unadjusted basis, exports grew 15.8 per cent year-on-year while imports expanded by 16.9 per cent.

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.