Financial news

During yesterday’s session on the Malta Stock Exchange the index ended on a negative note as it dropped by a substantial 1.3 per cent to close at the 3,718.961 level.

In the banking sector, HSBC Bank Malta was the day’s worst performer as the equity shed 6c1, which equates to a 1.9 per cent decline to close at €3.239. Investors in the bank transacted 9,850 shares across six deals for a market consideration of €31,904.

Meanwhile, Bank of Valletta registered the day’s highest number of deals, as investors swapped 38,435 shares across 34 deals. However, the Bank closed the session on a negative note, as its share price dropped by 5c, or 1.6 per cent, to end the day at the €3.000 level.

Go headed the day’s list of losers as it declined by 6c, which represents a depreciation of 3.2 per cent to close at €1.799. Activity in the quadruple play telecommunications company resulted when 13,200 shares were transacted across 3 deals.

International Hotel Investments also registered losses during the day as the equity shed 1c1 or 1.2 per cent to close at €0.929. Investors in the hotel property and management group exchanged an aggregate of 10,000 shares across three deals. Finally, FIMBank was the day’s sole non-mover as the equity closed unchanged at €0.950.

Meanwhile, Island Hotels Group Holdings has today approved the audited financial statements for the financial year ended October 31, 2010. During this period the Group reported a loss before tax of €617,787, which contrasts to the profit before tax of around €1.6 million registered over the same period a year earlier.

Weekly US economic review

The minutes of the latest Federal Open Market Committee (FOMC) showed that some of the 11 voting members said that the additional data is pointing towards a sufficiently strong recovery and as a result it could necessitate changes to the bond purchase plan. However, other members did not agree with this view. The minutes also showed that officials are still disappointed on both the pace and the unevenness of the improvements in the labour markets. Meanwhile, central bankers raised projections for economic growth for this year to 3.4 - 3.9 per cent compared with November’s forecasts of 3-3.6 per cent.

Meanwhile, figures from the Labour Department showed that consumer-prices increased 0.4 per cent in January for the second month, which has exceeded the 0.3 per cent economic forecasts. The core inflation rate, which excludes volatile items rose 0.2 per cent, the biggest gain since October 2009. Also on a positive note, manufacturing output in January rose by 0.3 per cent after a revised 0.9 percent jump in December. This was the fifth consecutive month increase; however total production, including mining and utilities fell unexpectedly.

A separate report showed that retail sales rose by 0.3 per cent in January, less than the 0.5 per cent forecast. This drop was mainly led by a lower demand in building material stores and restaurants. Finally, a general economic index which measures manufacturing in the Philadelphia region increased at the fastest pace in seven years in February to 35.9. This was much higher than the 21.0 reading forecasted by various 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.