Financial news

Trading for yesterday's session at the Malta Stock Exchange resulted in yet another positive outcome as the Index rose by 1.7 per cent to reclaim the 2,858 mark. All four listings in the equity market performed well with activity and gains in the banking sector making up the lions' share of the day's trades which were spread over a total of 45 deals.

Among the financial sector components, Bank of Valletta was the day's star performer with the equity rising by 9c6 or four per cent to terminate at €2.45.

The equity touched an intraday high of €2.50 before selling pressure forced the price to retrench slightly. The day's activity consisted of 9,921 shares, carrying a market consideration of €24,531 which were exchanged across 17 deals.

HSBC Bank Malta was the most liquid and actively traded equity when investors struck 31,320 shares over 22 deals for a market value of €77,401. The Bank was also a gainer for the day as it climbed by 6c or 2.5 per cent to close at €2.50.

Lombard Bank Malta also rose during the day albeit increasing less than the other major banks to close 5c higher at €2.50. Investors traded a total of 2,000 shares which were spread over four deals for a monetary value of €5,000.

Malta International Airport registered the highest increase during the day as it bounced up by 10 cents or almost five per cent pushing the closing price up to €2.17. Trading activity for the airport operator was however relatively subdued as investors exchanged only a mere 750 shares over two deals.

In the fixed interest sector of the market, activity was spread over nine government stocks and five corporate bonds. In the government securities the 5.50% MGS 2023 was the day's best gainer as the stock rose by 117 ticks over five deals to reach €106.16. All bonds in the corporate debt issues registered no change in price.

Weekly eurozone economic review

The eurozone's economic schedule over the past week was limited to a couple of relevant economic figures, but the lack of activity in data releases was more than made up for with contradictory comments from prominent European Central Bank members.

The economic data released portrayed yet another weak scenario for the old continent, as industrial production fell by another 2.3 per cent for the month of February and a year-on-year figure of -18.4 per cent. This was the tenth consecutive straight month of decline. As spare capacity builds up, upward pressure on prices is dissipating. Consumer price inflation was reconfirmed at 0.6 per cent for the month of March.

Meanwhile, the ECB President continued to trickle hints that the ECB will cut rates "moderately" in the next policy committee meeting. In an interview aired by a Polish channel, apart from stating that there is still some room to lower its headline interest rates, he also commented that the ECB has good reasons to consider that the economic recovery will take place in the course of 2010, with 2009 described as a "difficult period for all economies".

The moderate rate cuts hinted by a number of ECB members were indeed questioned by other counterparts within the ECB's Governing Council as there are some members that are still pushing for more aggressive cuts and the implementation of quantitative easing. In fact, the influential head of the German Bundesbank Axel Weber stated that the ECB will announce a package (of measures) within a reliable time frame, minimum for the rest of the year and beginning of next year.

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.