The Malta Stock Exchange index shed another 24 points, or 0.7 per cent yesterday, to close at the 3,350.675 level. Yesterday, the index fell 0.2 per cent on a broad-based sell-off.
In the banking sector, shares of the large retail banks closed lower. Bank of Valletta plc shares shed 4c, or 1.4 per cent, to close at €2.840 in 27 deals for a total of 32,452 shares. HSBC Bank Malta plc, meanwhile, was also lower, losing 1c, or 0.3 per cent, to end the day at €2.990 in relatively low volume of 12,200 shares across five deals.
Go plc stock continued its downward trend, dropping 4c, or 3.0 per cent in seven deals for a total of 15,800 shares to finish at €1.29. On Wednesday, Go shares fell 0c9, or 0.7 per cent, in heavy volume of 38,650 shares.
Malta International Airport plc lost 4c9, or 2.9 per cent, and closed at €1.650 on volume of 8,890 shares across seven trades. On Wednesday MIA announced traffic results for the month of April. Passenger movements at the local airport operator grew by 25.3 per cent during the month, reaching a level of 300,123, the highest number ever registered in the month of April and the first time the figure in this month hit the 300,000 mark. The 25.3 per cent gain over last year’s figures was mitigated by the fact that last year’s April passenger traffic was affected the Icelandic volcanic ash cloud disruption.
Finally, beverage and food distributor Simonds Farsons Cisk plc, witnessed 1,167 of its shares change hands in a single deal to close at €1.800.
Weekly UK economic review
The Bank of England kept rates at a record low of five per cent yesterday, as expected by market participants, given a spate of recent, subdued economic data placed doubts on the strength of the UK economy.
Relatively weak UK activity and a drop in Consumer Price Index inflation to four per cent in March dampened any expectations of a rate hike. Financial markets failed to respond to the announcement while the Sterling had fallen to a 13-month low against the Euro before the announcement, due to the divergence between BoE policy and the hawkish stance recently taken by the European Central Bank.
Britain’s service sector slowed more than expected in April, adding fuel to the dovish stance of the BoE. The Purchasing Managers Index for the services sector fell to 54.3 for the month, from 57.1 in March, staying in positive territory for a fourth straight month. Yet analysts were expecting a more robust level of activity, anticipating a reading of 56.
Signs of slowing growth in the UK economy could be worrying for the British coalition government, which has staked its reputation on eliminating the budget deficit, currently at 10 per cent of GDP, by 2015.
Activity in Britain’s construction sector, meanwhile, was also slower than expected in April. Lower activity in the housing market and civil engineering sub-industries forced the index to a level of 53.3, from 56.4 in March.
This is the first time this year that the housing market witnessed a contraction, while commercial activity recorded a marked improvement for the month over last.
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.