Financial news

Trading activity for yesterday’s session on the Malta Stock Exchange ended in negative territory for the index, as it dropped by 0.4 per cent to terminate at the 3,364.970 level.

The day’s most significant loser was Lombard Bank Malta as the equity dropped by 8c9 or 3 per cent to close at €2.840. Despite this decline, volume was muted as two investors exchanged just a mere 1,000 shares.

Elsewhere, in the banking sector, HSBC Bank Malta also closed the session lower as the equity depreciated by 1c or 0.3 per cent to end the day at €2.940. Trading activity in the bank resulted when 12,690 shares were transacted across eight deals. Meanwhile, Bank of Valletta was the only non-mover during the day as it closed unchanged at €2.740. The bank was nevertheless the day’s most liquid and actively traded equity as investors negotiated 21,033 shares across 11 deals.

Beyond the financial sector of the market, International Hotel Investments declined by 1c, which equates to a drop of 1.2 per cent to close at €0.820. Activity in the third largest equity by market capitalisation was muted as 1,551 shares were transacted across a single deal. Likewise, also ended the session on a negative note, as it shed 0c4 or 0.9 per cent to close at €0.435.

Meanwhile, Middlesea Insurance and Malta International Airport shares traded in positive territory as both companies gained 1c each. Volume in Middlesea was very low as 460 shares were swapped across one deal. However, investors in MIA transacted 12,440 shares across five deals.

The week ahead - Economic indicators for week starting June 6

In the US, this week, hardly features any relevant economic data. The release of the trade balance data on Thursday is expected to show that the trade deficit has continued to widen due to the strong increase in oil price in March and April. This week also features the Fed’s Beige Book, an economic report published every six weeks by the US central bank. Other data include initial jobless claims and import prices for May.

In the eurozone, the European Central Bank meeting due on Thursday, is expected to keep the refinancing rate at 1.25 per cent. Meanwhile, investors will look for clarity on the central bank’s next move at the press conference. Along with the industrial production data in some member countries, details on the first quarter eurozone Gross Domestic Product will be published. With regard to the data on new orders in German manufacturing, a countermove is expected this month.

In the United Kingdom, the Bank of England is also expected to leave its main rate at 0.5 per cent on Thursday, given the stuttering recovery in the country.

Furthermore, recent purchasing managers’ surveys for the manufacturing and service industries signalled disappointing trends. Other economic indicators due to be released this week include the trade balance and manufacturing production figures, both for the month of April. Finally, at the end of the week we shall have the economic growth figure for the month of May as estimated by the National Institute of Economic and Social Research.

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.