Financial news

For the first time since October 3, the MSE Index moved higher during an active session at the Malta Stock Exchange, up by 1.189 per cent to close at 3,488 points. Nine equities were active throughout the session with an aggregate value of €193,695 spread over 51 deals.

Interest in Bank of Valletta mopped up all supply entering the market up to the €3.72 level with a turnover of 13,871 shares across 18 transactions, thereby pushing the price up by 3.62 per cent over its previous level. At the end of the session, outstanding bids amounting to 540 stood at €3.70, countered by a sell order for 2,500 shares at €3.80.

HSBC Bank Malta increased by 5c when 19,415 shares were traded over 18 deals, which equates to a 1.75 per cent rise, to close at €2.90.

Activity in Go to the tune of 2,680 shares caused a rise of one per cent to end the session at €2.02, with the current best bid at this price with an interest of 2,000 shares.

Maltapost closed lower by 2.44 per cent as 4,029 shares, carrying a market consideration of €3,221 were sold across two trades.

Similarly, RS2 Software traded down to €0.803 which equates to a 2.19 per cent reduction with a relatively high turnover of 30,000 shares.

The highest turnover was seen in Crimsonwing when 49,000 shares were all exchanged at €0.498, while trades in Grand Harbour Marina saw the price trade at a discount, slightly down by 0.05 per cent to end the day at €2.199.

International Hotel Investments dealt in unchanged territory, with the price trading at the €0.97 level for a volume of 6,534 shares. Meanwhile, activity in Lombard Bank of 500 shares failed to steer any moves, as the equity closed unaltered at €3.

Weekly eurozone economic review

The credit crunch took a sharp turn to the worse in Europe over the earlier part of last week, culminating in some coordinated response from central banks but still mainly piecemeal action from the governments. The European Central Bank (ECB) joined in a globally coordinated interest rate cut with several members of the G10 central banks, by cutting interest rates by 50 basis points, thus reducing the refinancing rate to 3.75 per cent.

With fear of spiralling of the credit crunch causing further disorder in markets, the outlook for economic growth has quickly become more clouded. The ECB’s price stability fears have melted quickly in the face of the coming deterioration in the economy. The statement accompanying the ECB’s decision continued to state that avoiding second-round inflation effects in price and wage-setting remains "imperative".

Against the backdrop of a continuously deteriorating situation, on Sunday, the eurozone’s 15 EU members announced a concerted action plan to restore confidence and proper functioning of the financial system.

The plan lays down a number of actions that should be taken by the member states in order to solve both the funding and solvency problems their banks might encounter.

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.