Financial news

Investor's attention was mainly focused on the relatively low volatile fixed interest market during yesterday's trading session at the Malta Stock Exchange. Nevertheless, activity was struck in four equities with the Index closing lower by a small margin at 2,801 points.

HSBC Bank Malta was the day's only positive mover with the Index heavyweight gaining 2c or 0.9 per cent to terminate the session at €2.22 on the execution of 3,450 shares spread over six deals.

Bank of Valletta remained the most active and liquid equity with a grand total of 19,710 shares, carrying a market consideration of €43,965, being spread across 15 trades. The equity declined 4c or 1.8 per cent with the equity closing slightly higher than its intra-day low at €2.21.

Two investors swapped 1,000 shares in Malta International Airport at the €2.37 level, which represents a discount of 3c or 1.3 per cent over its previous closing level.

Similarly, a single transaction for 400 shares was executed in Go, leaving the equity languishing at its lowest levels since its Initial Public Offering back in 1998.

Three companies, namely FIMBank, Malta International Airport and Lombard Bank, are expected to report their full year results for the period ending December 31, 2008, next week.

In the fixed interest sector of the market, activity was spread across seven corporate bonds and eight government stocks, with bond prices ending the session mixed.

The sector's top performer was the 6.70 per cent Mizzi Organisation Finance 2009/12 which gained 200 ticks on the purchase of 9,659 nominal at €102. On the other hand, the sterling denominated 7% MIDI 2016/18 shed 25 ticks to terminate at £103.

There was no prevailing direction in the sovereign section of the market as government stocks also displayed a mixed picture with the 5.70% MGS 2012 gaining 40 ticks to reclaim €108.60, while on the opposite end the 5.90% MGS 2015 suffered a 394-tick drop to close at €111.62 on low volume.

Weekly eurozone economic review

There were plenty of economic data ahead of the European Central Bank's meeting this week, but unfortunately all the data issued continues to point towards a deepening recession.

Unemployment figures published late last week rose by 256,000, taking the total increase so far to over 1.5 million. A point of significant concern is that nearly two-thirds of this figure was accumulated over the past four months, which is an unprecedented rate of deterioration. This increase resulted in an unemployment figure of 8.2 per cent for the month of January. Looking forward further increases in unemployment seem inevitable. Meanwhile, a number of confidence surveys were also issued with economic sentiment hitting another new record low. The downturn was broadly based, with industrial, service sector and consumer confidence falling again.

February's eurozone Consumer Price Inflation estimate confirmed that inflationary pressures remained subdued, even though February's figure edged up to 1.2 per cent from 1.1 per cent, when market participants were expecting a slight drop to one per cent. Nonetheless, CPI remains well anchored below the two per cent target of the ECB, fuelling expectations that the ECB will cut interest rates by a further 50 basis points tomorrow.

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.