Financial news

The Malta Stock Exchange Index suffered substantial losses yesterday, dropping almost 90 points, or 2.4 per cent, as banking shares and turmoil in the Middle East and North African regions continued to turn investor sentiment sour.

HCBC Bank Malta plc shares continued their downward slide, dropping a precipitous 23c8, or 7.4 per cent, to close at €3.001 in ten deals of 17,984 shares. HSBC shares have been falling consistently of late, shedding over 14 per cent of their market value in just four sessions.

Bank of Valletta plc shares, meanwhile, closed unchanged at €3.000 in moderate volume of 21,345 shares across 28 deals.

Also in the banking sector, FIMBank plc shares shed 5c, or 5.3 per cent, to end the day at US$0.900 in five deals for a total of 8,070 shares.

Other shares to close lower were those of Plaza Centres plc and Malta International Airport plc, which fell 13c and 2c, or 7.9 per cent and 1.1 per cent, respectively, to finish the session at €1.520 and €1.750, respectively.

Managing to close in positive territory were the shares of Maltapost plc, which gained 2c1, or 2.0 per cent, and ended at €1.095 in a single deal of 1,000 shares.

Also making gains on the day were the shares of Middlesea Insurance plc, as a single trade of 1,000 shares provided MSI stock with a marginal advance of 0c5, or 0.5 per cent, to close at €1.060.

The other equity to trade in the session were the shares of MIDI plc, in which a single trade of 10,000 shares changed hands to see the real estate development company stock close unchanged at €0.450.

Weekly Eurozone Economic Review

In the eurozone, economic activity expanded at its fastest rate in four years as the composite index based on a survey of euro-area purchasing managers in both the manufacturing and services industry rose to a level of 58.4 in February from 57.0 registered in the previous month. That was the highest level since July 2006 and well above the 56.9 forecast by many economists. Manufacturing continued to lead the way as production in the 17-nation region rose at a pace only marginally below the peak seen in April of 2010. With companies increasing output and hiring to meet export demand, consumers are growing more optimistic, even as governments step up austerity measures. Germany, Europe’s largest economy, has been the main driver of the region’s expansion. Daimler AG, the world’s second-largest maker of luxury cars, last week forecast higher full-year earnings. While in France, business confidence increased more than economists forecast in January.

Meanwhile, according to the European Union’s statistic office in Luxembourg, European Industrial orders rose by 2.1 per cent in December over the previous month as surging demand for capital goods such as factory machinery boosted orders. French orders jumped 7.5 per cent, making up for the slump in German orders, which were 2.9 per cent lower than in November. Economists had forecast a one per cent drop in orders for the month, while year-on-year orders gained 18.5 per cent from December 2009.

Finally, construction output for the region for the month of December, which was hit by unusually cold temperatures, dropped 1.8 per cent from November and 12.0 per cent from a year earlier.

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.