Financial news

The Malta Stock Exchange lost further ground yesterday as financial services stocks pulled the index down more than 17 points, or almost 0.5 per cent, to close at 3633.927 points. Bank of Valletta plc was the big loser on the day as its shares lost 5c9, or 1.8 per cent, on volume of 14,244 shares, to close at €3.30. The other major local bank, HSBC Bank Malta plc, also ended in negative territory yesterday, losing 0c9, or 0.3 per cent, to close at €3.38 in six trades of 9,500 shares. Rounding out the losses in the financial services sector was Middlesea Insurance plc which lost 1c, or 1.3 per cent, to end the session at €0.74 in four trades of 6,700 shares.

Meanwhile, Malta's local postal operator, Maltapost plc managed to mitigate the index's losses as its shares gained 3c, or 3.9 per cent, to close at €0.80 in 19 trades of 158,813 shares. This was the third session in a row that Maltapost has registered gains in its share price. The best unsatisfied bid at the end of the session stood at €0.72 for 900 shares while the best unsatisfied offer was registered at €0.80 for 15,000 shares. Other shares to witness trading but finished unchanged were International Hotel Investments plc which closed at €0.80, on 6,289 shares, and the local mobile phone operator Go plc, which closed at €2.299 on volume of 2,000 shares.

Weekly eurozone economic review

In the eurozone, this week's economic data was focused on the region's inflation numbers, which highlighted the continued lack of inflation pressures. Eurozone's Consumer Price Index (CPI) headline inflation inched up from 0.9 per cent year-on year in January to one per cent last month. This rise was largely explained by a pick-up in energy prices since core CPI fell from 1.1 per cent to 0.9 per cent on a yearly basis. Meanwhile, producer prices rose 0.7 per cent in January from an increase of 0.1 per cent the previous month.

Industrial new orders unexpectedly increased for the second consecutive month by 0.8 per cent in December from an upwardly revised increase of 2.8 per cent the previous month. Retail sales fell by 0.3 per cent in January, after a brief increase in December, which shows that consumer demand is still weak.

In fact, unemployment rose by 38,000, leaving the unemployment rate flat at December's downwardly revised rate of 9.9 per cent. French and Italian unemployment rose, while the German rate was unchanged and Spanish unemployment fell for the second time in three months.

Elsewhere, the eurozone Purchasing Managers Composite Index (PMI) which is based on a survey of eurozone's purchasing managers in the services and manufacturing industries remained at 53.7 in February. Finally, Greece yesterday announced additional fiscal measures aimed at achieving the planned reduction in the budget deficit from 12.7 per cent of Gross Domestic Product last year to 8.7 per cent this year. The measures amount to another €4.8 billion and include a rise in VAT, further tax hikes on fuel, alcohol and tobacco, and additional cuts to the public sector wage bill.

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.