Financial news

Local equities traded practically flat during yesterday's trading session at the Malta Stock Exchange with the Index declining by just 0.07 per cent to close at a new multi-year low of 4,336 points as soft gains in Middlesea Insurance were offset by a slender decline in HSBC Bank Malta.

HSBC Bank Malta, the largest listed company on the exchange, shed 1c or 0.3 per cent as 4,300 shares were swapped across nine transactions. As a result the equity slipped to €3.88, its lowest level in 31 months, leaving at the session's close 616 shares best bid at €3.85 against 350 shares offered at €3.88.

Middlesea Insurance was the only equity to close in positive territory, with investors scooping up 444 shares across three transactions at the €3.43 level, which represents a 2c or 0.6 per cent premium to its previous closing level.

The equity traded for the last session with the attached rights to receive a gross final dividend of 12c81 per share which will be distributed from the company's Untaxed Account on July 3.

Maltapost was the day's most liquid equity with 12,563 shares being swapped across eight transactions. All deals were struck at the €0.75 level, maintaining its previous valuation. Maltapost will be publishing its interim results for the period ending March 31, on Thursday.

Grand Harbour Marina maintained its previous closing price of €2.05, however the initial trade of the day was struck at a 5c discount at the €2.00 level.

The day's activity consisted of 2,420 shares which were exchanged across two transactions.

Elsewhere in the market Bank of Valletta and FIMBank maintained their previous respective closing prices of €4.95 and $1.88 on turnover of 3,584 shares and 6,600 shares respectively.

Eurozone economic review - weekly round up

Economic growth in the 15 countries using the euro surprised to the upside with a 0.7 per cent gain for the first quarter versus last quarter for 2007, which aggregates to 2.2 per cent year on year. However, the data issued, rather than signalling resilience in the face of the various economic shocks, there is a feeling of imbalance and unsustainable strength. Evidence of economic divergence between the two largest economies in the euro area and the rest of the countries continued to emerge.

German Gross Domestic Product grew by 1.5 per cent quarter on quarter, twice the consensus expectation and twice what the Bundesbank has recently forecasted. This was the fastest pace of growth from Germany since the second quarter of 1996. Meanwhile, France managed a very respectful 2.2 per cent gain. On the other hand Spain saw a 2.7 per cent increase - high compared to the rest of the region, but its weakest performance for five years, with a further deceleration likely in the period ahead as the all important construction sector correction continues. Overall the European commission is forecasting that the eurozone growth will slow to 1.7 per cent this year from 2.6 per cent last year.

Eurozone inflation dipped to 3.3 per cent in April - still well above the European Central Bank's two per cent ceiling, but better than the 3.6 per cent reading that preceded it.

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.