Financial news

The Malta Stock Exchange advanced yet again yesterday as the index managed to gain another 53 points to advance by 1.3 per cent to 3956.286.

Middlesea Insurance plc recovered more of the losses it experienced last week as it gained a further 6.8 per cent to close up 5c to €0.778.

Crimsonwing plc also managed relatively large gains on yesterday as the shares climbed 1c8 to close up almost 4.4 per cent to €0.428 in a single trade of 673 shares.

Malta International Airport plc also had a good day on the exchange as their shares climbed 10c, or 3.7 per cent, to close at €2.80 in three deals of 2,990 shares.

Bank of Valletta plc shares continued their recent winning ways as the shares climbed 7c, or 1.9 per cent to finish the session at €3.76.

HSBC Bank Malta plc shares lost some of the steam that they had over the previous trading sessions yet still managed to make a marginal gain of 0.4 per cent on the day as they increased 1c8 to €4.00.

Another stock which managed considerable gains yesterday was International Hotel Investments plc which climbed 2c8 to finish the trading session up 3.6 per cent to €0.80.

Other stocks which traded on the day but finished flat were FIMBank plc which closed at US$1.18 on volume of 3,450 shares, Go plc closed at €2.27, Lombard Bank Malta plc which closed at €3.139 and Maltapost plc which saw its shares traded in one deal of 13,102 shares and ended the day at €0.749.

Weekly eurozone economic review

As expected, the European Central Bank left its key interest rate at 1 per cent, where it has been since May 2009, last week. In his post-meeting press conference, ECB President Jean-Claude Trichet warned that the recovery would be bumpy. His caution was justified after the German statistical office reported that the recovery there has stalled in the fourth quarter, and Spain's economy also showed few signs of a turnaround, while analysts even fear that Greece's public finances could have a negative impact on other member states. The President also dismissed as 'absurd' the suggestion that any country could leave the eurozone.

Meanwhile, more expensive fuel drove consumer prices in the 16-country member of the euro higher in December as they rose by 0.9 per cent year-on-year after a 0.5 per cent gain in November. Fuels for transport were responsible for almost half of the annual rise, according to Eurostat, since crude oil prices in December 2008 were roughly half the $70-77 per barrel range last month.

Eurozone industrial production rose twice as much as expected month-on-month in November, increasing by 1.0 per cent but was down 7.1 per cent when compared with last year. Production was supported by gains in all sectors with the exception of energy which contracted 2.2 per cent. The strongest monthly performers were durable goods and intermediates.

Meanwhile, November seasonally adjusted merchandise trade surplus narrowed to €3.9 billion from a revised €4.7 billion in October. The unadjusted surplus was €4.8 billion, a marked improvement on a €7 billion shortfall in the same month a year ago.

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.