The MSE Index gained 0.2 per cent to 4,825 points during yesterday's trading session at the Malta Stock Exchange urged by slight gains in the two largest listed banking components.
HSBC Bank Malta was the day's top gainer as buying activity saw investors clear 9,400 shares off the offer side over six transactions pushing the price higher by 3c or 0.6 per cent in the process to close at €4.70. HSBC Bank Malta is expected to announce their full year results in mid-February.
Activity in Bank of Valletta consisted of 6,482 shares changing hands across 11 trades with an average price of €6.29. The equity closed higher by 0.1 per cent to €6.295 thanks to some late trading activity, thereby detaching itself from this year's lowest reading.
A sole trade of 500 shares in Lombard Bank Malta depressed the price further, to close at a new low for this year of €13.20. This translates in a 20c or 1.5 per cent decrease on its previous showing.
Maltapost, the latest listed company on the Exchange was the day's most liquid equity with a grand total of 89,506 shares changing hands across 14 transactions. However, this trading activity did not have any effect on the closing price of the share which remained unaltered at €0.66. At the end of the session a further demand of 4,463 shares remained outstanding at the bid side at yesterday's closing price.
Trading volume of 14,588 in FIMBank supported the $2.00 level, gained during the previous session. Four transactions were struck in Plaza Centres with the equity declining 1.5 per cent to €1.537 on a mere 800 shares traded.
Datatrak Holdings traded for the first time this year, shedding 1c5 or 4.9 per cent to €0.29. The day's activity consisted of 9,212 shares which were swapped across three transactions.
Eurozone economic review - weekly round-up
Inflationary figures for the month of January came in at 3.2 per cent per annum, thereby accelerating even further away from the European Central Bank's (ECB) target rate of just under two per cent. The pass through of high headline inflation into wages and inflation expectations has traditionally been more of an issue in Europe than in the UK or the US given the strength of workers' unions in Europe. Basic economic theory holds that inflation is a late cycle phenomenon. Hence when the economic cycle is turning down it is almost inevitable that headline inflation remains elevated for some time.
The external outlook to the European economy has darkened in the past weeks although the industry is still holding up and unemployment remains relatively low, but business sentiment in general has dropped to early 2006 levels while retail sales have stalled.
In a press statement the ECB described economic growth as having turned "more moderate" at the turn of the year. The possibility of further tightening of credit standards as shown by the latest Bank Lending Survey, or the risk of disorderly credit market moves in the event of a downgrading of the monoclines, makes the council's assessment that growth would be "broadly in line with trend potential" in 2008 maybe too optimistic.
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.