Yesterday's lacklustre session at the Malta Stock Exchange saw low volume activity being struck in five equities which brought a 0.04 per cent decline to the Index which terminated at the 4,696 level.
With 9,308 shares changing hands across just seven trades, Bank of Valletta was the day's most liquid and actively traded equity. Activity was mainly driven by profit takers who sold down to the €5.83 level to convert into cash the previous session's gain.
HSBC Bank Malta, the largest listed equity on the exchange managed to muster 5 trades with an aggregate of 2,820 shares were swapped. Relatively speaking, the equity was particularly volatile initially dropping 2c to later recoup most of the day's loss and close weaker by just 0.05 per cent to €4.418.
Go traded for the last session with attached rights to receive a net final dividend of €0.1165. However, the only deal to cross the floor of the exchange equated to a mere 200 shares which were executed at the €3.144 level.
Elsewhere, two investors swapped 580 shares of Lombard Bank Malta without altering the company's previous valuation assessed on a share price of €13.00. Lombard Bank Malta will be publishing its full year results tomorrow.
FIMBank failed to trade on the day when the equity should have commenced trading without the right to receive a script dividend of circa $0.038, as well as a bonus share for every five held. Its previous closing level of $2.09 means that the theoretical ex-bonus/dividend price should be that of $1.71.
6pm Holdings attracted a relatively large amount of trades, with 9,114 shares being swapped across four transactions. The technology company lost almost four per cent with the equity closing the day at the €0.70 level, and leaving a further outstanding supply of 4,886 shares.
Weekly eurozone economic review
Last week the European Central Bank (ECB) left interest rates unchanged as it was widely expected. At the press conference after the March council meeting, ECB Governor Jean-Claude Trichet said that "the current monetary policy stance will contribute to achieving the objective" of price stability. This may indicate that the ECB is likely to postpone further interest rate cuts. The council neutral position was underlined by the fact that none of the members called for either hikes or cuts but the decision to leave rates at four per cent was unanimous.
The rhetoric of the statement was tilted to the hawkish side, with emphasis on upside risks to price stability, overcoming the threat of slowing economic growth.
Housing and financial market developments as well as a slower world economy and rising exchange rates are weighing heavily on the euro area economy.
Meanwhile the Eurozone Purchasing Manager Index (PMI) moved higher in February, rising to 52.7 from 51.8, well above the expectations of a further decline. The Services PMI was particularly strong, moving some way above the three-and-a-half-year low recorded in January. However, the Manufacturing PMI did ease slightly and while both remain above the critical 50 level (which separates expansion from contraction) they do indicate slower growth during the first two months of the year compared with the final quarter of 2007.
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.