Financial news

Yesterday's session at the Malta Stock Exchange resulted in a negligible decline of 0.06 per cent to the Index as it terminated practically unchanged from Monday's session at the 2,707 level. Trading in the equity market was spread over a total of 29 deals as four different listings were active. Intraday activity saw the Index temporarily trading in positive region but subsequent selling pressure on two major components eroded previous gains..

Lombard Bank Malta was the day's best performer with the equity rising by 1c or a marginal 0.4 per cent to close at €2.53. Activity for the company was spread over just two deals on a low volume of 1,500 shares. The annual report for the financial year ending December 2008 issued earlier this month reported that earnings per share rose from €0.206 in 2007 to €0.241 with total assets increasing by four per cent to €525 million from €505 million in the previous year.

Bank of Valletta was a non-mover for the session as the price closed unchanged at €2.20. The financial services company registered an intra-day high of €2.25 which equated to a 5c increase, however, this was eventually lost later on during the session. Trading was spread over a total of 9,327 shares which were struck over 11 deals.

Similarly, HSBC Bank Malta was also a non-mover, closing unchanged from the previous session at €2.18. Activity for the bank was spread over four deals and a market value of €5,503.

Go was the session's only laggard as the listing dropped by 1c7 or 1.14 per cent to terminate at €1.48 after yesterday's positive outing. The quadruple play communications' company was also the most liquid and actively traded component as 11,865 shares were swapped over 12 deals.

In the fixed interest sector of the market, activity was spread over seven government stocks and seven corporate bonds. Contrary to Monday's session, most government securities ended the day in negative territory with the five per cent MGS 2021(I) losing 126 ticks over two deals. In the corporate debt sector the 6.7 per cent Eden Finance issue climbed by 100 ticks to close at par.

Weekly eurozone economic review

Less than a year ago the European Central Bank was seen as the ideal monetary authority totally in control of its financial system, with the euro-area holding on better than other major economies. This rosy picture has now vanished and the Frankfurt-based bank is now being criticised for dragging on its feet in the easing of monetary policy and the adoption of more non-conventional measures to help the banking system.

But in the last ECB meeting it was indeed stated that the concept of quantitative easing was being taken into consideration and this was also reinstated by ECB President Jean Claude Trichet in an interview with the Wall Street Journal. Mr Trichet also held that although the refinancing rate was already at "very, very low levels" at 1.5 per cent, rates could go even lower. Mr Trichet also emphasised that what really counts are the interest rates that are being charged in the market and that the public finally gets, where he added that the eurozone six-month money market rates were below those in the US, even though overnight rates are near zero per cent in the US. Meanwhile, industrial production continued its downward spiral in January contracting for the ninth consecutive month. This acceleration is the sharpest rate seen in the 24 years of available data, with year-on-year decline reaching a negative 17.3 per cent.

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.