Financial news

Yesterday's session resulted in a positive outcome for the Malta Stock Exchange as the Index rose by almost a full percentage point to terminate at 2,727 points. Trading in the equity market was spread across four listings for a total of over 37 deals. The Index was supported by the two largest components which both registered the gains.

Bank of Valletta was the day's best performer as the equity rose by 12c2 or 5.82 per cent to close at the €2.22 level. Trading for the financial services company was spread over 15 deals and carried a market consideration of €28,899, leaving at the end of the session a further 692 shares unsatisfied at the day's closing price against supply of just 100 shares at a lofty €2.50.

HSBC Bank Malta's gains for the day were slightly more subdued with the equity moving higher by 0.2 per as 2,855 shares, carrying a market consideration of €6,198, were struck across four deals to end yesterday's session at €2.16.

FIMBank was the session's most actively traded equity with 8,950 shares swapped over 16 transactions. The dollar denominated equity was a loser for the day as it registered a marginal decline of 1c to close at $1.48. Following last week's announcement of final results for the year ending 2008, the directors will be recommending to the Annual General Meeting of shareholders the payment of a dividend amounting to US$3,035,907 representing a net dividend per ordinary share of 2.25 US cents.

Similarly, Maltapost was also a loser for the session as the equity depreciated by 1c to terminate at €0.73, which represents a new yearly low for the postal service operator. Activity was spread over two deals as investors exchanged an aggregate 18,000 shares.

In the fixed interest sector of the market activity was spread over four government stocks and just four corporate bonds. In the government securities, the highest turnover was reported in the 4.80% MGS 2016 as 650,000 nominal were transacted over two deals. The session's only gainer was the 5.10% MGS 2014 which rose by a mere four ticks to €106.21 over 30,282 nominal.

Weekly eurozone economic review

Economic data in the eurozone did not benefit from the recent optimism in equity markets, as the data issued over the past week was anything but positive.

The latest industrial production figures from the major economies in the eurozone showed that the industrial slump has worsened over the past month.

During economic slowdowns, when economies typically build up their inventories, the problem arises when countries begin to run down their inventories denting further the Gross Domestic Product.

The figures issued by the largest economy in Europe were a cause of concern as the world's top exporter saw its industrial output shed 7.5 per cent for the month of January. It stands to reason that an export-oriented country like Germany is among the first to feel the pinch of an ailing global economy, hopefully it should also be among the main beneficiaries when things start settling down.

Meanwhile, January's very small rise in eurozone retail sales (up 0.1 per cent in January from zero per cent in December) confirmed that falling inflation failed to spur consumers into spending.

Going forward, the deteriorating labour market conditions do not bode well for retail sales. Furthermore, employment data showed that labour costs growth remained relatively high as productivity growth continued to weaken.

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.