Financial news

The Malta Stock Exchange Index lost almost 14 points, or 0.4 per cent on yesterday, in a somewhat subdued session where 48,654 shares were traded across 39 deals.

The big gainer on the day was the stock of MaltaPost plc, which advanced 3c, or 2.8 per cent, to close at €1.100, in three deals for a total of 3,000 shares. Yesterday’s closing price represents another all-time high for the shares of the local postal operator.

Also making strong gains in the session were the shares of GO plc, which added 5c, or 2.8 per cent, to finish at €1.850 in a single deal of 1,000 shares.

Closing significantly lower was the stock of International Hotel Investments plc, which dropped 3c, or 3.1 per cent, in a single trade of 10,000 shares, to end at €0.940.

Malta International Airport plc stock was off by 1c, or 0.6 per cent, and closed at €1.800 in light volume of 2,000 shares across three deals.

In the banking sector, meanwhile, trading was relatively muted as HSBC Bank Malta plc shares fell a marginal 0c1, to close at €3.499 in low volume of 3,840 shares while Bank of Valletta plc stock closed unchanged at €3.050 on volume of 28,814 shares. Both BOV and HSBC’s share price have been trading in relatively volatile ranges of late. On Tuesday, HSBC shares advanced 9c9 while BOV’s stock added 3c. HSBC is due to release its operating results for its 2010 financial year tomorrow.

Weekly Eurozone Economic Review

In the eurozone, the economy ended the last quarter of 2010 with stable growth, as Gross Domestic Product (GDP) rose by 0.3 per cent from the previous three months. This was less than the 0.4 per cent economic expansion that was expected by a number of economists. Meanwhile, during the same period, German economic growth was also less than expected, as GDP increased by 0.4 per cent, against expectations of a 0.5 per cent expansion. In the eurozone’s second largest economy France, the economy grew by just 0.3 per cent, which is half the forecasted increase, while Greek and Portuguese economies contracted. The lower-than-expected pick-up in growth was partly due to the cold weather that curbed output.

Industrial output in the then 16-country member of the euro dropped in December. In fact, output fell by 0.1 per cent from November, even though economists are optimistic that the outlook was promising amid signs of recovery across much of the region’s weaker peripheral countries. In a separate report, German investor confidence increased for a fourth month in February as Europe’s largest economy gathered strength. The ZEW centre for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict developments six months in advance, rose to a reading of 15.7 from 15.4 in January, which is the highest since July 2010.

The eurozone’s trade deficit contracted during December to €2.3 billion, which is less than the upwardly revised figures for November, when the deficit was at €3.2 billion.

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.