Financial news

The Malta Stock Exchange closed relatively unchanged yesterday in light volume of 45,179 shares, closing at 3586.678 as the local banks finished mixed.

HSBC Bank Malta plc managed to make the largest gains on the day as the major local bank closed up 2c, or more than 0.6 per cent, to close a €3.31 in two trades of 800 shares.

Meanwhile, shares in HSBC's counterpart in local retail banking, Bank of Valletta plc, lost the same amount to end the session at €3.30, or down 0.6 per cent, in 11 trades of 9,070 shares.

Rounding out the banking shares to see trading action yesterday was Lombard Bank Malta plc, which closed up 1c, or 0.3 per cent to end the session at €3.10 in three trades of 3,000 shares.

The other mover on the day was Maltapost plc, which continues to trade in relatively heavy volume, as 25,488 shares exchanged hands in six trades. Shares in the local postal operator closed down 0c1, or 0.1 per cent, to close at €0.789. Other shares which traded throughout the day but closed unchanged were Malta International Airport plc, which closed at €3.10, on volume of 891 shares; International Hotel Investments plc which closed at €0.765, on volume of 3,930 shares; and Go plc which closed at €2.269 on volume of 2,000 shares. Go yesterday announced that its board of directors is scheduled to meet on Monday to consider and approve its financial results for the financial year ended December 31, 2009. It is also scheduled to consider the proposal of a shareholder dividend.

Weekly eurozone economic review

In the eurozone, the main highlight this week was the European Central Bank (ECB) meeting last Thursday in which the bank gave further details about the gradual phasing out of the non-standard emergency measures taken during the financial crisis. The bank stated that this month's provision of six-month loans will be the last and that three-month funds will be offered on less generous terms. In the meantime, ECB President Jean-Claude Trichet reiterated that the phasing out of unconventional policies was not a sign of tighter conventional monetary policy to come and stressed that the current level of official interest rate was "appropriate".

The second revision of the eurozone's Gross Domestic Product (GDP) for the fourth quarter of 2009 confirmed that economic growth in the area was 0.1 per cent. This was weaker than the third quarter rise of 0.4 per cent and was mainly explained by a halt in inventory building and a fall in investment. While household spending stagnated, there was a solid rise in exports during this quarter. This data shows that the recovery remains heavily reliant on the external sector and there is little sign that domestic demand is picking up.

Elsewhere, data on the industrial sector in Germany shows that this remains in a healthy state, since industrial production during January increased 0.6 per cent following an upwardly revised fall of one per cent the previous month. On the other hand, inflation in Germany for February, as calculated by the harmonised European Union method, was revised upwardly to 0.4 per cent month-on-month, twice the initial 0.2 per cent estimate. Finally, European investor confidence, an index which measures sentiment in the 16-nation euro region improved to -7.5 in March from -8.2 the previous month.

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.