Trading for yesterday's session at the Malta Stock Exchange resulted in further gains to the Index which rose by 1.3 per cent to terminate the session almost at the 3,000 mark, its highest level since mid-February. All four active equities on the day ended in positive territory with buying activity across an aggregate 36 deals pushing the price higher.
International Hotel Investments was the day's best performer as its shares rose by 3c or 3.3 per cent to close at €0.95, its highest level for the year. The day's activity consisted in 7,000 shares which were exchanged across two deals.
Buying activity was also evident in HSBC Bank Malta which moved higher by a further 4c or 1.6 per cent to reclaim the €2.55 level, following the purchase of 12,000 shares across eight transactions. At the end of the session 2,591 shares were best bid at the day's closing price while 1,000 shares were best offered at €2.555.
Similarly, Bank of Valletta continued to gain on continued buying interest, this time rising by 1c5 to close at €2.40. The equity commenced trading without the attached rights to receive a gross interim dividend of 3c5 per share. Investors pushed the price higher when they struck 9,700 shares, carrying a market consideration of €23,169, over 13 deals.
Despite trading for much of the day unchanged Go managed to edge higher by half a cent in the final moments of the session to close at €1.74. Activity for the quadruple play communications' company was also spread over 13 deals for a monetary value of €26,167.
In the fixed interest sector of the market, activity was spread equally over five government stocks and five corporate bonds. The best performers in the corporate sector were the euro and dollar tranche of the seven per cent FIMBank plc 2012-2019 which were both listed on Monday following their April public offering. Both tranches commenced trading above par as the dollar issue gained 200 ticks over 5,000 nominal while the euro issue rose by 150 ticks over 59,700 nominal.
Weekly eurozone economic review
Economic indicators in the 16-nation bloc posted mixed results with optimistic signs in both manufacturing and service business sectors, which registered a milder rate of contraction. On the negative end of the spectrum, however, retail sales remained in negative territory despite the expected cut in interest rates by the European Central Bank.
The services business sector, which covers everything from financial institutions to airlines, staged its biggest one-month rise since December 2001. The Index rose to 43.8 compared to analysts' forecasts of 43.1, which indicates a slower rate of contraction albeit being below the 50 mark that divides growth from contraction. The eurozone composite Producer Manager's Inflation (PMI) which includes manufacturing was also revised upwards to its highest level since last October.
Meanwhile, the fall in retail sales, which dropped by a record 4.2 per cent on a year-on-year basis for the month of March, has dented other positive economic data.
The European Central Bank as it was widely expected reduced interest rates by 25 basis points and has announced new plans to embark on a bond purchase programme to the tune of €60 billion and to lend banks unlimited funds for up to 12 months in a further bid to lift the economy out of a deep recession. Despite stopping short of the massive asset purchases being followed in the US, the move signified a greater willingness by the ECB to pump further money and hopefully reignite the 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.