Financial news

The Malta Stock Exchange Index gained more than 82 points, or 2.5 per cent yesterday as investors poured back into equities, pushing the index to the 3,412.637 level.

International Hotel Investments plc shares soared during trading, gaining €0.10, or 14.3 per cent, to close at the €0.800 in seven deals for a total of 28,946 shares.

Stock of the local telecommunications provider, Go plc, made a marginal gain of 0c1, or less than 0.1 per cent, to close at €1.381 in three deals for a total of 3,260 shares.

In the banking sector, HSBC Bank Malta plc added 4c, or 1.4 per cent, to end at €3.000 on low volume of 3,700 shares across five deals.

Bank of Valletta plc stock added 1c, or 0.4 per cent on the day, closing at €2.830 in six deals for a total of 3,230 shares.

At the end of trading yesterday, Grand Harbour Marina released its interim directors’ statement whereby it stated that for the first quarter of 2011 the company realized a high level of occupancy throughout the marina while berthing revenues amounted to €303,212 compared to €279,879 registered for the same period a year earlier.

Last Wednesday, Medserv plc also released its interim directors’ statement for the first quarter of 2011.

The company experienced an upturn in activity out of its base in Malta due to the ongoing crisis in Libya, leading to a positive effect on the financial results for the period. The companies operations out of the Misurata, Libya base, meanwhile, have remained suspended.

Weekly UK economic review

British consumer price inflation leapt in April, to 1.0 per cent on the month, or 4.5 per cent year-on-year, its highest annual rate since October 2008. Higher travel costs and higher duties on alcohol and tobacco were some of the main drivers of the rise in prices. The rise was considerably more than the 0.7 per cent analysts were expecting and helped to boost the Bank of England’s view that inflation will hit five per cent this year. Core inflation, which eliminates food and energy prices from the total inflation figure, rose to 3.7 per cent for April, which is the highest level since records began in January 1997.

The labour market in the UK, meanwhile, continued to show modest signs of improvement in March as the International Labour Organisation’s unemployment rate for the first quarter of 2011 registered at 7.7 per cent, slightly lower than the expectations of market participants of 7.8 per cent. Yet a jump in the number of benefits claimants in April may have dampened the prospects of further strengthening. March’s figure was backed by a rise of 118,000 persons in employment, the highest figure in more than two years. The UK government is banking on the private sector to create enough jobs to offset heavy losses in the public sector as spending cuts begin to take their toll.

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.