Financial news

Trading came back to normal during the mid-week session on the Malta Stock Exchange following Tuesday's public holiday. The day resulted in a positive outcome for the index as it moved up by 1.3 per cent to terminate at the 3,385.18 level.

Crimsonwing headed the list of gainers during the day as the equity rose by six cents or 19.4 per cent to terminate at €0.37. Turnover in the company consisted of 4,000 shares swapped across a single transaction.

International Hotel Investments also ended the session in positive territory as the equity rose by 5c or 6.7 per cent to close at €0.80.

In the banking sector, HSBC Bank Malta registered a 1c gain in its share price which equates to an increase of 0.3 per cent to terminate at €3.25. Meanwhile, Bank of Valletta and Lombard Bank Malta shares registered only modest gains of 0c3 and 0c1 to end the session at €3.70 and €2.80 respectively. Nevertheless, Bank of Valletta registered the day's highest number of trades as investors transacted an aggregate of 9,206 shares across 14 deals.

Middlesea Insurance, was the session's most liquid equity as it registered a volume of 28,082 shares, which were swapped over 11 deals. The insurance company managed to recoup the losses it registered during Monday's session as it rose by 3c5 or 5.8 per cent to terminate at €0.635.

Malta International Airport was the day's worst performer as the equity's share price depreciated by 1c1 or 0.5 per cent to terminate at €2.389. Two investors in the airport operator transacted 1,300 shares.

Go shares also moved down, as they declined from their highest level registered in a period of 13 months, dropping by 0c9 or 0.45 per cent to close at €1.99.

Weekly eurozone economic review

In the eurozone, the European Central Bank (ECB) as expected, left interest rates unchanged at one per cent following the latest council meeting. ECB President Jean-Claude Trichet said that the financial markets had improved and he saw the gradual withdrawal of emergency measures through next year as "appropriate". In fact, the bank announced that the long-term 12-month liquidity tenders would cease in December while shorter-term programmes would continue into 2010.

Mr Trichet also pointed out that this was not a signal that interest rates would necessarily be increased in the next 12 months. Meanwhile, a second reading of third quarter Gross Domestic Product results in the 16-country member of the euro revealed, as expected, that the eurozone economy moved out of recession as it grew by 0.4 per cent. The results further indicate that government spending increased by 0.5 per cent from the previous quarter while private sector demand contracted as households reduced spending and businesses cut back on investment. External demand was also supportive, but the greatest contribution to growth came from inventories.

The eurozone's services sector expanded for a third consecutive month in November as it rose to a 23-month high of 53, up from October's revised reading of 52.6. Meanwhile, energy prices boosted Producer Price Inflation in the euro-area which rose more than expected at 0.2 per cent in October from September's negative 0.4 per cent. While retail sales were lower than expected for October, investor sentiment in the eurozone rose in November to its highest level in 17-months and an expectations measure hit pre-financial crises levels.

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.