Financial news

The Malta Stock Exchange lost just under six points, or 0.2 per cent, to close at the 3,582.472 level, as investors remained uneasy yesterday. Trading volume remained weak as 25,873 shares were exchanged across 22 deals in just four stocks.

The big loss of the day was suffered by the stock of Malta International Airport plc, which fell 5c, or 2.9 per cent, to close at €1.700 in nine deals across 8,210 shares.

Go plc shares were also down on the day, falling 4c, or 2.2 per cent, to end the session at €1.760 in low volume of two trades for a total of 2,160 shares.

In the banking sector, shares of the two major retail banks finished mixed. HSBC Bank Malta plc shares rose by 1c9, or 0.7 per cent, to close at €2.950 in four deals for a total of 6,000 shares.

Bank of Valletta plc stock, meanwhile, closed 1c, or 0.3 per cent lower, to end the day at €2.970 in seven deals for a total of 9,503 shares.

Trading in the corporate bond market finished mixed as some of the bonds which suffered recent losses due to events in the North African and Middle East regions finished higher, while other bonds of companies affected by the turmoil continued to suffer. The day’s big loser was the 7.5 per cent Mediterranean Investments Holding Plc € 2015 issue, which fell €9.500, or 10.6 per cent, to close at €80.000 in 10 deals for a total of €62,000 nominal.

Weekly eurozone economic review

In the eurozone, inflation was lower than initially estimated in January but still well above the European Central Bank’s target and likely to rise further mainly due to a spike in the price of oil. The consumer price index for the month was up 2.3 per cent in January, on a yearly basis, from an earlier projection of 2.4 per cent and compared to 2.2 per cent in December. Month-on-month, price fell 0.7 per cent, more than the economists had initially expected.

Meanwhile, eurozone industrial new orders for the month of December defied forecasts as they rose 18.5 per cent year-on-year, confirming a strong economic recovery going into 2011. Monthly figures increased by 2.1 per cent over November, exceeding forecasts by more than three per cent as markets expected a drop in orders for the month. Except for Germany, which suffered declining industry demand for big ticket items, new orders were up in every other eurozone country. Without the volatile orders or ships, planes and trains, industrial orders rose 1.3 per cent on the month and were 18.9 per cent higher than a year earlier.

Finally, the unemployment rate for the region for the month of January decreased slightly, shedding 0.1 per cent over December, to 9.9 per cent, slightly below market expectations of 10.0 per cent.

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.