Financial news

Yesterday's session at the Malta Stock Exchange resulted in a negative turnout as the Index shed a further 0.14 per cent to terminate marginally lower than Monday's level at 2,644 points. Trading activity remained low in the equity market with just 11 deals struck in five active components. The second largest equity in terms of market capitalisation ended the day in the red, dragging the Index lower.

HSBC Bank Malta was the day's best performer as the listing rose by 4c or almost two per cent to terminate the session at €2.12. The day's activity consisted of 2,740 shares, carrying a market consideration of €5,787 which were exchanged across four transactions.

Bank of Valletta was, relatively, the day's most liquid and actively traded equity when investors exchanged 3,701 shares over four deals. Despite trading at an intra-day high of €2.09, which equates to an increase of 2c, selling pressure in the final moments of the session evaporated the day's gains and the price closed unchanged at €2.07. Similarly, Malta International Airport was also static for the day as the equity registered no change in price to close at €2.05. Trading activity for the airport operator was subdued and spread over a single deal on low volume.

Simonds Farsons Cisk was the day's worst performer as the equity lost 14c or more than seven per cent to close at €1.75, which is a new low for the current year. The sole trade of the day consisted in 366 shares which were swapped across two investors early in the session.

Likewise, International Hotel Investments was a loser for the day as the equity shed 2c or 2.50 per cent to close the session at €0.78.

Activity in the hotel propriety and management group was also low with 350 shares exchanged across a single deal.

Weekly eurozone economic review

The European Central Bank was by far the busiest of the major central banks across the globe as a barrage of economic data flooded the market. Topping this list was the interest rate decision by the ECB, where Jean-Claude Trichet & Co. surprised the markets by reducing rates by just 25 basis points when market participants had already priced in a 50 basis point cut. The indication given in the press conference from the ECB's President hinted that another rate cut can be expected for May.

The news issued during the past week was rather conflicting; we had some positive figures from the Composite Purchasing Manager Index, marred with negative retail sales figure, low investor confidence levels and rising unemployment.

Unemployment for the month of February rose to 8.5 per cent, above the expected figure of 8.3 per cent and January's 8.2 per cent. Ireland and Spain saw the biggest increases in unemployment, both up 0.7 percentage point to 10.0 per cent and a significant 15.5 per cent respectively.

The PMI Composite came in higher than expected although still languishing in contraction territory. If we had to decompose the composite figure we would notice that the services sector provided the main boost for a positive outcome as the manufacturing sector continued to struggle.

The Producers' Price Inflation moved in line with expectations as factory gate inflation continued to drop, thereby relieving some of the burden on producers' input costs.

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.