Financial news

The Malta Stock Exchange Index dropped over 51 points, or 1.4 per cent yesterday, as investors engaged in broad based selling across several sectors. Trading volume was brisk, at 113,696 shares across 38 deals.

Continuing the trend from earlier in the week, banking shares continued to slide further yesterday. Bank of Valletta plc shares shed 5c, or 1.3 per cent, to close at €3.82, on volume of 18,815 shares across 15 deals. HSBC Bank Malta plc, meanwhile, shed 1c9, or 0.6 per cent, and ended the session at €3.170, in four deals for a total of 4,780 shares.

Also in the banking sector, Lombard Bank Malta plc lost 2c, or 0.7 per cent, and closed at €2.780 in a single deal of 1,500 shares.

Suffering the day’s biggest loss were shares of International Hotel Investments plc, which fell 4c5, or 4.8 per cent, in seven deals for a total of 49,600 shares to end at €0.90.

Also in the tourism sector, Malta International Airport plc shares were down 1c, or 0.6 per cent on the day and finished at €1.650 in a single deal of 2,000 shares.

Middlesea Insurance plc shares also finished lower, albeit marginally, shedding 0c9, or 0.9 per cent, to close at €1.000 while Simonds Farsons Cisk plc shares dropped 2c, or 1.2 per cent, to close at €1.680 in two trades for a total of 2,333 shares.

The only equity to trade during the day yet managed to maintain its closing price was that of Maltapost plc, which finished at €1.000 in five deals for a total of 24,928 shares.

Weekly eurozone economic review

In the eurozone, the manufacturing sector expanded more than initially estimated in December, mainly driven by Germany’s export-led expansion. The Purchasing Managers’ Index for the manufacturing sector in December was upwardly revised to (PMI) of 57.1 from an earlier estimate of 56.8. This is also higher than the 55.3 level which was registered in November. Meanwhile, a separate report also showed that the PMI for the services sector in December was revised upwards to a reading of 54.2 from an earlier reading of 53.7. However, this still shows that growth slowed from 55.4 in November.

In the meantime, the inflation rate in the euro-zone increased to 2.2 per cent in December on a year-on-year basis, after increasing 1.9 per cent the previous month. As a result, consumer prices exceed the two per cent of the European Central Bank’s limit for the first time in more than two years. This increase in the inflation was mainly due to higher food and energy prices. In fact, food prices rose 1.4 per cent in November from a year earlier, while energy costs rose by 7.9 per cent. The core inflation, which excludes these volatility costs held at 1.1 per cent

Finally, industrial new orders increased by 1.4 per cent in October, after declining by 4.2 per cent the previous month. Economists were expecting orders to increase by 1.5 per cent during October. On a yearly basis, industrial orders increased by 14.8 per cent in October, lower than the 18.4 per cent which was expected.

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.