Financial news

Investors' put a one day blip behind them and returned to the market to purchase shares during yesterday's trading session at the Malta Stock Exchange, particularly those equities within the banking sector. As a result the MSE Index gained 0.7 per cent to close the day at 5,051 points, its highest level since late February last year.

Bank of Valletta was the day's most liquid and actively traded equity with a grand total of 19,912 shares changing hands across 26 trades. The equity gained 3c8 or 0.5 per cent to close the day at the €8.26,8 level. This session marked the final opportunity for investors to purchase shares with the right to receive a bonus share for every 4.92581 held, implying a theoretical ex-bonus price of €6.59 when the market reopens for business today.

HSBC Bank Malta continued to gain ground, increasing by a further 8c or 1.6 per cent to €4.98 on low volume. Selling activity has suddenly dried up, forcing the hand of buyers who upped their bid prices to purchase shares ahead of the company's full year results which are expected to be announced later on this month.

A single deal in FIMBank saw 2,100 shares being swapped at the $1.768 level which represents the slimmest gain to its price.

Elsewhere in the market, low trading activity was witnessed in Malta International Airport and GO which both maintained their previous closing prices of €3.21,5 and €3.01 respectively on 500 shares and 1,200 shares correspondingly.

Eurozone economic review - weekly round-up

International equities started off the new year on a negative footing with all the major indices closing the week under review in the negative territory.

Worries about the state of the US economy and increasing fears that the United States might be heading towards a recession loomed over the markets in general.

The worst hit was the US market with the Dow Jones having its worst-ever start to a new year, and the Nasdaq being among the worst performers, registering a loss over the week of 5.18 per cent. This was mainly due to the issue of negative data relating to the manufacturing sector and to the sharp rise in the unemployment rate. The markets here recovered some of the lost ground towards the end of the week, aided by healthcare stocks.

The Asian markets tracked those in the United States as investors dumped shares across the board and fled to the safety of gold. The only breather here was given by defensive stock buying, however, this was not enough to reverse the negative trend of the Asian stocks.

The same pessimism reigned over the markets in Europe. Once again here we saw investors buying defensive stocks, such as pharmaceuticals and utilities, in an attempt to set off some of the overall market volatility.

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.