A slight increase of 0.01 per cent was registered in the MSE Index, with a total of 46 equity trades being registered during the first trading session of March on the Malta Stock Exchange. At the close of the session, the reading stood at 4,651 points.
FIMBank attracted the highest turnover with a grand total of 43,534 shares being swapped across nine trades. The equity gained 2.75 per cent to close at a 2008 high of $2.05,5. Prior to the market opening the trade finance specialist published its full year results which showed a 106 per cent increase in pre-tax profits reported at $ 9.6 million. The company will be recommending a scrip dividend of $0.038 and a 1 for 5 bonus share issue to all shareholders registered as at the close of business on March 13.
A single trade of 620 shares was executed at mid-session in Malta International Airport which pushed the price up by 1c or 0.3 per cent, to close at €3.23. The company will be reporting its annual results following a board meeting set for March 6.
Go continued to register a positive trend, following last week's publication of its financial statements. In fact 1,330 shares were traded over two deals at the €3.13,5 level representing a 0c5 or 0.2 per cent increase over its previous closing.
HSBC Bank Malta started trading early in the session at a premium of 4c9 over its previous closing, only to lose this increase towards the end of trading to close unchanged at €4.40, with a total of 15,335 shares changing hands over 13 deals.
The only negative change was registered in Bank of Valletta, which shed 3c4 or 0.6 per cent of it previous value to terminate the session at the €5.80 level. The day's activity consisted of 35,247 shares which were struck across 21 deals, leaving at the end of the session 200 shares best bid at €5.751 against supply of 2,660 shares offered at €5.82.
US economic review - weekly round-up
Fed Chairman Ben Bernanke in his twice-yearly testimony to the United States Congress last week clearly indicated that the Federal Reserve was moving towards further rate cuts. Mr Bernanke expressed concerns that the US could potentially suffer a worse downturn than was the case in 2001 given that the pressures this time around are on households and banks.
The chairman insisted that inflation will ease later on this year, even if oil remains around $100 per barrel. Mr Bernanke quoted that "Oil prices do not have to come down to reduce inflationary pressure. They just have to flatten out." The Fed has reiterated that they will act in a timely manner as needed to support growth and to provide adequate insurance against downside risks.
Speculation of further interest rate cuts saw the US dollar coming under further pressure. After several failed attempts since early November last year, the EUR/USD finally broke stronger than $1.50 last week.
Last Friday's Chicago Purchasing Manager Index (PMI) has confirmed what we have already seen in both Philadelphia and New York purchasing manager's surveys. The Chicago report showed a sharp decline to 44.5 from 51.5, with weakness fairly broad based. This marks a breach of the 50 level mark thereby highlighting a contracting economy.
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.