Financial news

The MSE Index lost 0.1 per cent of its value during yesterday's trading session at the Malta Stock Exchange, which saw trades being struck in seven different equities. The larger capitalised companies registered modest gains but were outweighed by heftier declines in the smaller capitalised companies.

HSBC Bank Malta was the day's most active equity in terms of trades as 13,562 shares were exchanged across 12 transactions. The final deal of the day was executed at the €4.401 level.

FIMBank gave up all of Monday's gains as 26,200 shares were sold in rapid succession across four transactions forcing the price down by 2.7 per cent to close the day at $2.00. On Monday, the trade finance specialist reported record breaking full year results which showed that pre-tax profits more than doubled over the previous financial period to $9.6 million.

Registered shareholders as at the March 13 will be entitled to attend the annual general meeting, receive a scrip dividend of $0.03c8 and receive a one for five bonus share issue. Bank of Valletta traded twice on low volume, with the initial trade going through at a 2c premium over yesterday's closing price, while the other trade restored the price to close unchanged over its previous session at €5.80.

Go, the quadruple play provider which reported its full year results on February 27, continued to gain ground notching higher by a further €0.005 to close at the €3.14-level. The equity is still trading with the attached right to receive a net final dividend of €0.1165.

Crimsonwing was the day's biggest loser as 3,100 shares were sold across two transactions squeezing the price lower by 3c5 or 6 per cent to €0.55. Two investors swapped 1,000 shares of 6pm Holdings at the £0.729 level, which represents a 0.1 per cent decline. The day's transaction marked the first trade in this security for this year.

Eurozone economic review - weekly round-up

Most of the economic data emanating from the euro area over the past week stemmed from the largest economy in the region, Germany. Overall the data issued this week confirmed the resilience of the German economy and the European Central Bank's decision to stay put for the time being.

German Gross Domestic Product rose by 0.3 per cent quarter on quarter (1.8 per cent year on year) in the last three months of 2007, after a rise of 0.7 per cent quarter on quarter in the third quarter. Growth in the German GDP was mainly derived from net exports, notwithstanding the recent euro appreciation.

The German Ifo index, which measures business sentiment, rose above consensus expectations. The rise in the Ifo index was mainly driven by the manufacturing sector, which indicates ongoing healthy foreign and domestic demand for German products.

The upward trend in employment continued in February as unemployment fell by 75,000 so that the German unemployment rate fell to 8.0 per cent from 8.1 per cent in January.

The stronger labour market performance should continue to support private consumption. On the other hand this may spur further pressure on the inflationary outlook as already signalled in last week's Harmonised Index of Consumer Prices (HICP) which rose 0.5 per cent month on month (2.9 per cent year on year).

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.