During Thursday's trading session at the Malta Stock Exchange, four equities gained in value and the same number declined. Large capitalise banking stocks were among yesterday's laggards and hence the drop in the MSE Index of 0.5 per cent to close at 4,602 points.
Maltapost remained the star performer with equity gaining a further 6.7 per cent on robust buying activity, which saw 24,450 shares being cleared off the offer side up to the €0.968 level.
Bank of Valletta suffered on an apparent buyers' strike which has dried up the bid side, forcing sellers over the past few sessions to lower their prices on low volume activity. The equity shed a further 15c or 2.7 per cent to close at €5.35, its lowest level since mid-May 2005. Over the past two sessions alone, €40 million worth of market capitalisation has been lost compared to a consideration of transacted shares of just €43,107.
HSBC Bank Malta lost 1c or 0.2 per cent as 5,478 shares were sold down to the €4.405 level, while FIMBank shed 2.3 per cent as 18,385 shares were sold across four transactions, squeezing the price down to $1.70.
Fresh buying activity returned to International Hotel Investments, the third largest listed equity, with 22,019 shares struck across nine deals.
The equity initially dropped to €1.01 before recovering to close 0.5 per cent higher at €1.039.
Go gained 1c to reclaim the €3.010 level, while a single transaction of merely 36 shares in Middlesea Insurance was transacted at the €3.60 level, which represents a 2.8 per cent premium over its previous closing level.
Elsewhere in the market, Malta International Airport traded at a slight discount at €3.297, while Crimsonwing remained stable at €0.55.
Weekly eurozone economic review
The European economy looks set to hold on tight to its comfort zone as it keeps on postponing any rate decision. Inflation has surprised on the upside but economic confidence indicators have weakened.
The Eurozone Purchasing Manager Index for the region's dominant services sector slipped to 51.7 in March, its second lowest since July 2003. Meanwhile, in the manufacturing sector production eased markedly as the index fell to 52.1 from 53.7. Both index readings are still hovering above the 50-level mark which divides economic growth from contraction.
The European Central bank (ECB) is also doing its part to alleviate some of the liquidity pressures currently looming over the financial markets. The ECB has lent eurozone banks an extra €15 billion last week to tide them over the Easter holiday period. Banks' eventual bid for the auction was four times as much, which highlights the extent of the current market stress.
The ECB's policy to keep rates on hold may eventually force to intervene in the currency market as the euro surged to a fresh record versus the dollar last week. The euro hit an all-time high of $1.5904 on Monday, March 17.
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.