Financial news

The Malta Stock Exchange Index managed to gain just under nine points, or 0.2 per cent, yesterday to close at the 3,372.135 level. Trading level was moderately light as 49,093 shares changed hands across 20 deals.

Two of the six equities to trade yesterday that managed to witness a change in their closing price were those of the two large retail banks. Bank of Valletta plc shares added a marginal 0c1, or less than 0.1 per cent, to close at €2.741 in nine deals for a total of 14,649 shares.

HSBC Bank Malta plc, after trading for most of the session unchanged, added 2c, or 0.7 per cent in the last moments of trading to close at €2.960 on volume of 9,500 shares across three trades.

Shares of the local telecommunications provider, Go plc, closed unchanged at €1.379 in light volume of 4,480 shares across four trades.

Malta International Airport plc also closed unchanged as a single deal of 3,360 shares took place to settle the airport operator’s closing price at €1.740.

MaltaPost plc also witnessed a single trade executed in their stock, as 2,104 shares changed hands to close the day at €1.020.

RS2 Software plc ended the day unchanged at €0.499 in two deals for a total of 15,000 shares.

Trading in the corporate bond market was mostly mixed as three of the eight bonds to trade in the day closed higher while two ended lower.

Weekly eurozone Economic Review

Monthly Eurozone retail sales came in stronger than expected in April, registering a 0.9 per cent increase, after slumping in March. Despite rising inflation and a European Central Bank (ECB) interest rate hike, the indicator of household demand came in higher than analysts’ expectations of a month-over-month 0.3 per cent rise. On a year-over-year basis, retail sales matched expectations of a 2.5 per cent increase. Yet analysts doubt if April’s rise can be sustained ahead of continuing fiscal tightening across the 17-nation area as well as continued rising commodity prices.

Eurozone economic growth, meanwhile, registered a quarter-over-quarter increase of 0.8 per cent in the first three months of the year as the European Union’s statistics office confirmed its earlier estimate of the region’s Gross Domestic Product (GDP) figure. Last quarter’s rise comes on the heels of a 0.3 rise in the previous three months as investment, household and government consumption spurred the region’s recovery. Economists doubt that growth in the region can be sustained going forward, yet despite market wariness, market participants still expect the ECB to raise interest rates in July. On year-over-year terms, GDP growth was 2.5 per cent, up from 1.9 per cent in the last three months of 2010.

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.