The Malta Stock Exchange opened the week on a negative footing as the Index dropped by 1.12 per cent to 4,640 points, even though gainers and losers balanced out.
Grand Harbour Marina gained further ground as the marina operator rose 4.8 per cent as 17,590 shares were purchased across 4 transactions. Investors are still pursuing shares on the back of their exceptional full year results published last week and in view of the fact that the equity is still trading with the attached rights to receive a lucrative net final dividend of €0.20c per share.
Bank of Valletta dropped 14c or 2.5 per cent as 8,540 shares carrying a market consideration of €47,941 shares were swapped across four transactions. The bank is expected to report its interim earnings towards the end of this month.
HSBC Bank Malta shed 1c or 0.2 per cent to close the day at €4.41. The most heavily capitalised equity on the index issued a public announcement where it stated that Shaun Wallis will relinquish his post as Chief Executive Officer as from the May 8, Mr Wallis will be replaced by Alan Christopher Hugh Richards.
Elsewhere, FIMBank outperformed the otherwise sloppy banking sector by closing 0.5 per cent higher at $1.91.
International Hotel Investments dropped 3.8 per cent to €1.01 on low volume selling activity ahead of the company's full year results which are due to be reported following a board meeting taking place today.
Elsewhere in the market, a single purchase of Plaza Centres saw two investors swap 64,100 shares at the €1.70 level, which represents a 1.8 per cent premium over Friday's closing level. Middlesea Insurance shed 0.2 per cent of its value to close at €3.51,4 while Go traded practically flat at €3.01,5.
US weekly review
Those who are stating that the United States economy is already in a recession had further confirmations from the collapse in payrolls last Friday. Last month's non-farm payrolls were down 80,000 and there were 67,000 in downward revisions to January and February.
The deterioration is fairly wide spread. The manufacturing sector shed 48,000 jobs, and construction 51,000, while services added a trivial 13,000 positions. The latter is well down from the more usual six figure gains we are accustomed to. The only sector that is making a meaningful contribution is education and healthcare, the least cyclical component of employment, which added 42,000 jobs last month. To this effect the unemployment rate jumped to 5.1 per cent, from 4.8 per cent, the highest reading since September 2005, as unemployment rose by 434,000.
Meanwhile, the Federal Reserve chairman in a mid-week testimony commented that the Fed has done a significant amount of easing and focused on the downside risks to economic growth and the severe financial strains that still exist in financial markets.
This hints to a more moderately paced course of action from the Fed, which is also reflected in the expectations of market participants who are forecasting a rate cut of a 25 basis point for the month of this month.
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.