The MSE Index lost 0.6 per cent of its value during the week's opening session, notwithstanding the fact that gainers outpaced decliners by four to two, with the latter having a more profound effect on the MSE Index which closed at 4,517 points.
GlobalCapital was the day's top gainer following an announcement after Friday's closing bell whereby the diversified financials group announced that it had reached an agreement for the acquisition of a 85.5 per cent stake in Medifin Holding Ltd, which holds 99.9 per cent of the issued share capital of Mediterranean Bank plc, subject to due diligence and regulatory approvals. The consideration value of the transaction was not disclosed. Nevertheless, investors purchased 3,420 shares across seven trades pushing the price up by 19c6 or seven per cent its highest permissible level for the day, to close at €2.996.
Bank of Valletta recouped 4c or 0.8 per cent, bouncing back slightly from a multi-year low touched last week. The day's activity consisted of 4,902 shares which were swapped across seven transactions, with the equity reclaiming the €5.29 level.
HSBC Bank Malta dropped 10c7 or 2.5 per cent as a sudden bout of selling activity hit a thin bid side forcing the price to close at €4.193, its lowest level since mid-December 2005. FIMBank declined 0.5 per cent as 12,000 shares were sold at the $1.90 level.
MaltaPost swung back into positive territory on the purchase of 5,000 shares across a single transaction which was executed at the €0.75 level, which represents a 2.0 per cent premium over Friday's closing level. Malta International Airport gained a further 0.8 per cent to close at a new yearly high of €3.378. Shares are still trading with the attached rights to receive a net final dividend of 5c8.
Elsewhere in the market, trades executed in Go, Grand Harbour Marina and 6pm Holdings did not alter their previous closing prices of €3.01,4, €2.25 and €0.78 respectively.
US weekly review
A full set of updates on the United Sates price indices was issued last week. Increases in March consumer prices were once again an unwanted gift from higher energy prices, which rose by 1.9 per cent. On the other hand, food prices were slightly more subdued, rising by 0.2 per cent.
All in all, the year on year Consumer Price Index was held at four per cent, still well above the Federal Reserve's limits. Excluding food and energy costs (which tend to be more cyclical), core prices rose by a modest 0.2 per cent.
Elsewhere housing starts declined by a much bigger than expected 11.9 per cent month on month in March, further dampening an already gloomy housing market in the US. This latest decline leaves house starts at their weakest level since the low point of the housing downturn in the early 1990s.
Economic data last week also brought a weaker jobs market and a down Beige book on regional activity. Markets are currently pricing in an approximate 80 per cent chance of a 25 basis points rate cut at the April 30 Federal Open Market Committee.
The probability of further rate cuts is still high, provided that commodity prices and the US dollar stabilise (both factors spurring inflationary pressures), which is possible if the financial markets begin to discount easing by the European Central Bank and further easing from the Bank of England.
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.