Financial news

The Malta Stock Exchange index lost over 32 points yesterday to end at the 3,346.882 level as trading volume concentrated around a single banking equity.

The equity leading the market lower was Bank of Valletta plc, whose shares fell 11c, or four per cent, to close at €2.640 in 27 deals for a total of 25,648 shares.

Also lower were the shares of the local airport operator, Malta International Airport plc, which finished the session at €1.700, down 1c, or 0.6 per cent. Trading was relatively light at 6,800 shares across four deals.

The equity of the telecommunications provider, Go plc, closed unchanged at €1.370 after trading much of the session 1c lower. Trading volume was low as just four deals for a total of 3,960 shares were executed.

The other equity to trade in the session was the stock of International Hotel Investments plc, which ended unchanged at €0.800 in a single deal of 706 shares.

Trading in the corporate bond market was also light as just €95,420 nominal across twelve trades changed hands, as the market finished in positive territory. Three of the six bonds to trade in the market closed higher while the remaining three closed unchanged. The 6.25% Corinthia Finance plc € 2016-2019 issue added €2.900, or 3.2 per cent, in a single deal of €1,300 nominal to finish the day at €94.000.

The week ahead - Economic indicators for week starting May 30

In the US this week, two highly anticipated data releases are on the agenda: the Institute for Supply Management’s manufacturing index, which is due tomorrow, and the labour market report, due out on Friday. Analysts are anticipating a reading of 57.6 for the PMI for the month of May, versus 60.4 a month earlier, based on poor showings by the three regional purchasing managers’ surveys already released. With regards to the labour market, economists feel somewhat more upbeat and expect an increase of 185,000 new jobs in May while the unemployment rate is expected to drop to 8.9 per cent following a sharp rise in April. Other key indicators due out this week include the ISM non-manufacturing composite index, scheduled for Friday, and the S&P Case/Shiller home price data for March, due out today.

In the eurozone, the flash estimate for the 17-nation inflation figure for May is also due out today. Analysts are expecting the flash estimate to come in at 2.8 per cent, the same level as April, due to the decline in oil prices. Also due to be released is the Producer Price Index for the month of April. As well, the final readings for the Purchasing Managers indices will show how tangible declines in the survey are divided up between the individual countries.

In the UK, PMI data for the month of May, for both the manufacturing and services sector, are due out tomorrow and Friday, respectively.

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.