Financial news

The Malta Stock Exchange Index lost a mere 0.4 per cent to close at 4,621 points yesterday, as a lackluster performance in the Bank of Valletta equity, offset gains registered elsewhere. The day's activity on the equity market reached 82,939 shares with 44 deals executed in nine listed equities.

Selling interest of 20,335 shares across 24 deals in Bank of Valletta saw the price decline throughout the session by 10c which equates to a decrease of 1.8 per cent to close at the €5.35 level.

Trading in International Hotel Investments commenced late in the session with 18,000 shares changing hands at the previous going price of €1.09,9 only to later move marginally higher by 0c1 This was enough for the equity to close at its highest price of the year of €1.10.

Continued interest in MaltaPost by the tune of 8,600 across six trades pushed the price higher by 0.6 per cent to close at €0.79. The company will be announcing its interim results for the period ended March 2008 in a week's time.

The other positive performance was witnessed in Plaza Centres, with 2,900 shares over 2 transactions, which drove the price up to the highest level achieved this year at €1.72,5.

Meanwhile, the highest turnover was registered in 6pm, with 30,929 shares changing hands. This failed to alter the previous closing price of £0.77.

Trading in both HSBC Bank Malta and Malta International Airport, also left their prices unchanged at €4.39 and €3.33 respectively, on relatively low volumes.

The only other equities trading during the session were Go and Middlesea Insurance which declined marginally by 0.5 per cent and 0.4 per cent, respectively.

Weekly eurozone economic review

The European Central Bank (ECB) left interest rates unchanged as expected for the tenth consecutive month. The decision to keep rates on hold was a unanimous decision. In line with the previous meetings, the ECB maintained a sturdy stance on inflation.

The ECB president reconfirmed that medium-term price stability remains at the forefront of the Governing Council's priorities. This augments the Council's endeavour of anchoring down price expectations.

Meanwhile, the ECB still expects moderate but positive Gross Domestic Product growth in the coming months, with the euro zone's lack of major economic imbalances helping to prevent a sharp downturn along the lines of that currently underway in the US.

The President also commented that the current market turmoil is likely to last longer than previously expected. Mr Trichet stressed time and again that there were so far no signs in the hard data of supply constraints on bank lending to households or to firms within the eurozone.

The president also noted that the ECB's more timely Banking Lending Survey suggests that the credit conditions are tightening.

The Council will probably require clearer signs of economic slowdown and confirmation that the peak of inflation has been passed before the door to a rate cut opens.

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.