Local equities shifted slightly into negative territory during yesterday's trading session at the Malta Stock Exchange dragged lower by a bout of profit taking in the Index's largest component. Otherwise, activity in the bond market remained robust with a flurry of trades being executed across 13 different securities.
HSBC Bank Malta was by far the day's most actively traded equity with 15,686 shares changing hands across 15 transactions. The equity reached an intra session high of €4.99,9 before dropping slightly to close the session at €4.99. At the end of the session, best demand stood for 990 shares at a lowly €4.74 while 675 shares were best offered at €4.98,9.
Activity in Bank of Valletta consisted of 2,450 shares which were struck across six deals. The equity traded within a fairly thin trade range, but still closed unchanged at €6.84.
International Hotel Investments, the third largest listed equity, shed almost three per cent as a mere 1,000 shares were sold at the €1.01 level, while Go similarly terminated the session on the losers bench dropping 2c4 or 0.8 per cent to €3.02,6.
Malta International Airport was the only equity to close in positive territory, gaining 0c5 or 0.2 per cent to reclaim the €3.22 level. This increase was not enough to save the MSE Index from closing in negative territory.
Elsewhere in the market, 42,950 shares of Crimsonwing were swapped across three transactions with the recently listed equity maintaining its 10 per cent premium against its initial offer price at €0.55.
The MSE Index closed 0.5 per cent lower at 5,026 points.
Eurozone economic review - weekly round-up
At the first meeting of this year, following the inclusion of Malta and Cyprus as council members, the ECB Council decided to leave interest rates unchanged. A threat to hike rates if the effects from high oil and food prices creep into the core economy accompanies the rate decision. Rates are expected to remain on hold unless economic data weakens enough to force the ECB into action. The ECB meanwhile does not expect the economy to weaken significantly to merit immediate rate cuts.
In the days prior to the meeting eurozone consumer and industrial confidence for December declined in line with expectations while Euro-area Gross Domestic Product bounced back to 0.7 per cent for the quarter after having slowed to 0.3 per cent previously. Currently the euro area is subject not only to the credit crunch but also to traditional shocks in the form of softer world demand, a higher exchange rate and rising commodity prices. To date the main impact has mainly been observed through confidence surveys. The direct effect is likely to build slowly, data consistent with this downward trend will trickle slowly until weak growth expectations materialise. This year's growth will probably be below potential.
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.