Financial news

The Malta Stock Exchange Index shed eight points, or 0.2 per cent yesterday, to close at the 3,861.955 level. Trading volume was relatively brisk as 110,115 shares were traded across 58 deals, most of which were executed in the shares of Bank of Valletta plc.

BOV shares remained stable on the day, closing unchanged at €3.050 on volume of 62,427 shares across 30 deals. Trading in BOV has been heavy so far this week with over 360,000 shares changing hands in just three sessions.

HSBC Bank Malta plc shares, meanwhile, closed marginally lower, shedding 1c, or 0.3 per cent, to close at €3.500 in 13 deals for a total of 23,558 shares.

The other financial services stock to close lower in the session was that of Middlesea Insurance plc, which fell 3c, or 2.8 per cent, to finish at €1.040 in low volume of 4,060 shares across three deals.

Also ending the day lower were the shares of Go plc, which fell by 2c, or one per cent, to end at €1.900, in three deals for a total of 3,200 shares.

Simonds Farsons Cisk plc shares managed to put in a marginally positive performance yesterday and gained 0c9, or 0.5 per cent, to finish at €1.810 in a single deal of 500 shares. Also closing in positive territory was the stock of Malta International Airport plc, which added 1c, or 0.6 per cent, to end the session at €1.810 in four deals for a total of 5,370 shares.

Other shares to trade during the day yet closed unchanged were those of Maltapost plc and MIDI plc, which closed at €1.050 and €0.450 respectively.

Weekly US economic review

Despite rising inflation fears, the European Central Bank (ECB) kept interest rates on hold at a record low of one per cent as expected last Thursday. Although President Jean-Claude Trichet pointed out short-term inflation risks, he also stated that the medium-term risks were broadly balanced and that expectations were firmly anchored. Furthermore, he also reiterated that the bank would wait for the new ECB staff projections in March and that any substantial upgrading of the inflation forecasts would renew pressure for higher interest rates.

Meanwhile, the so-called factory-gate prices rose at the fastest annual pace in more than two years in December. European producer prices rose to 5.3 per cent from earlier, the most since October 2008, after increasing 4.5 per cent in November. This is mainly attributed to higher energy costs. Prices for crude oil increased by 12 per cent during the past six months.

A separate report showed that the services and manufacturing industries in Europe rose by a faster pace than it was initially estimated. The composite Purchasing Managers Index (PMI) was upwardly revised to 57 in January from an earlier estimate of 56.3. This was mainly due to higher output growth in Germany and France.

Finally, an index measuring investor confidence, rose to the highest level in more than three years in February to a level of 16.7 from 10.6 the previous month. This reading is also higher than the reading of 14 expected by economists.

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.