Financial news

The gains registered in the Malta Stock Exchange during Wednesday's session were lost yesterday as the Index fell back below 3,000 points to close at 2,972 points which equates to a 1.2 per cent decline over the previous reading. Activity was high in the equity market as a total of eight listings were active on the day. Trading was spread over a total of 46 deals with only one company registering an increase in price.

Plaza Centres was the only positive performer during the session, as the equity rose by 8c or a five per cent increase to close the day at €1.68. Trading activity for the session was spread over six deals for a market consideration of €43,304.

Bank of Valletta was the most liquid and actively traded equity for the day as trading was spread over a total of 16 deals with an aggregate 33,106 shares. The bank incurred a further loss to its share price as it terminated the session at €2.45, which equates to a new low for the financial services company.

HSBC Bank Malta was the worst performer for the day as the equity shed a further 8c declining by 3.16 per cent to end the session at €2.45, which is also a new low for the year. The day's activity for the Bank was spread over a total of 10 deals and a value of €32,675.

FIMBank incurred a negligible loss in share price of half a cent to close at $1.50. The equity traded a total of 20,900 shares over four deals.

Malta International Airport shares were another laggard on the day as the execution of four deals trimmed a further 2c in the airport operator to end the session at €2.43.

Maltapost was a non-mover at €0.79 while RS2 Software closed the day 1c lower to terminate at €0.79. Simonds Farsons Cisk was also active as trading activity was spread over two deals. The equity shed one-tenth of a cent to close at €1.90. The company announced on February 2 that two of its subsidiaries, Anthony Caruana & Sons Ltd and Wards Ltd are to be merged.

In the fixed interest sector of the market activity was spread over eight corporate bonds and five government stocks. Government stocks gained ground as comments from European Central Bank members fuelled expectations of a rate cut in March.

International market report - weekly round-up

Markets continue to see ample volatility as equity markets improved throughout the week from much lower levels. The markets' real concern is what Obama will ultimately decide to do with the proposed funding programmes.

In the US, US Treasury Secretary Timothy Geithner unveiled the new Financial Stability Plan (FSP) which allocated the second tranche of $350 billion secured under the Troubled Assets Relief programme (TARP). The announcement burst a bubble of excessive expectations and the markets' disappointment was clear as US equities declined. In fact, the Dow Jones Industrial Average lost 0.22 per cent over the week to close at the 7,939.53 level.

Meanwhile, the S&P 500 gained 0.18 per cent whereas the Nasdaq Composite Index rose by 15.48 basis points or 1.02 per cent. On the other side of the Atlantic, the French government announced a plan, whereby it will lend the French automakers a sum of €6.5 billion. The French government's announcement did little to boost sentiment, as the Paris CAC 40 shed 1.34 per cent to close at the 3,027.72 level. Nevertheless, the FTSE 100 index closed higher, gaining 0.13 per cent during the week. Frankfurt's Xetra Dax in Germany also inched marginally higher.

In Asia, Toyota revised its net loss forecasts down from an earlier estimate due to weak car demand both in the US and Japan. On the back of the news Moody's downgraded Toyota's Aaa rating by one notch with outlook negative, soon followed by S&P which cut the company's long-term rating by one notch. Japan's Nikkei 225, closed the week under review in the red as it shed 3.07 per cent. However, the Hang Seng index posted a marginal gain over the week under review.

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.