Financial news

The Malta Stock Exchange Index fell more than 36 points, or 0.9 per cent yesterday, as trading in equities was light and corporate bond holders trimmed their positions.

HSBC Bank Malta plc shares suffered the biggest hit on the day, dropping 15c, or 4.4 per cent, to close at €3.300 in four deals for a total of 6,640 shares. On Friday, HSBC released its operating results for the financial year ended December 31, 2010. The banking group earned a pre-tax profit of €83.1 million, an increase of 16.7 per cent over 2009.

Bank of Valletta plc shares, meanwhile gained five cents, or 1.7 per cent, to end the day at €3.050 in 12 deals for a total of 13,637 shares.

Maltaost plc stock, in its first down session in many, shed 2c6, or 2.4 per cent, to close at €1.074 in a single deal of 2,000 shares.

Other equities to close lower included Crimsonwing plc, which dropped 0c4, or 1.1 per cent, to finish the day at €0.375 in a single trade of 9,000 shares.

Island Hotels Group Holdings plc fell a marginal 0c1, or 0.1 per cent, in light trading of 600 shares, to close at €0.997.

Malta International Airport plc climbed two cents, or 1.1 per cent, as a single trade of 400 shares pushed the local airport operator’s stock to a closing price of €1.770.

The other equity to see action on the day was that of Middlesea Insurance plc, which gained 0c5, or 0.5 per cent, to end the day at €1.055 in two deals for a total of 4,000 shares.

The week ahead - Economic indicators for week starting February 21

In the United States, a number of indicators are due to be released this week. The Consumer Confidence Index for the month of February is scheduled to be released today while existing home sales are due tomorrow. Thursday will be an important day for data as data regarding durable good orders for January and the House Price Index for the month of December are expected to be released. On Friday, the first revision of the fourth quarter Gross Domestic Product figure is due. In the initial estimate US GDP registered a 3.2 per cent increase during Q4 over the same period a year earlier. Fourth quarter annualized figures are now expected to be revised slightly higher due to stronger than expected inventory investment in December.

In the eurozone, manufacturing activity continued to accelerate as Purchasing Managers Index initial indicators for February, released yesterday, reached a level of 59.0, its fifth consecutive monthly rise.

Today, Industrial New Order numbers are due, while, the Business Climate Indicator for February is scheduled to be released on Thursday with expectations for the figure to come in at 1.61 versus 1.58 for January. Expectations have improved based on strength in external demand as reflected in recent buoyant orders data. Also due on Thursday are a number of confidence indicators.

In the UK, the Bank of England minutes are due to be released tomorrow. Meanwhile, the first revision of the Q4 GDP figure is due on Friday. This revision will also provide the first break-down by expenditure component.

This article has been prepared by Bank of Valletta plc (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.