After the long weekend break, the Malta Stock Exchange opened its doors for business yesterday, giving investors the opportunity to react to the publications of various full year results and other important announcements.
FIMBank was the day's most liquid and actively traded equity with a grand total of 258,000 shares changing hands across 15 trades. The equity raced to and subsequently closed at $1.836, the highest permissible level of the day as investors reacted to news that the company would be netting a gross consideration of approximately $54 million from the sale of its 38.5 per cent stake in Global Trade Finance Ltd of India.
Grand Harbour Marina reported a quadrupling pre-tax profit figure of €3.9 million, thanks to the last minute conclusion of grants for berths of longterm use of three superyachts. Furthermore, its directors are proposing a very handsome net final dividend of €0.20 per share. The equity gained slightly on opening as investors purchased the only available 1,000 shares at the €1.748 level, leaving a demand for a further 8,904 unsatisfied at this level against 1,500 shares best offered at €1.95. Maltapost lost a further seven per cent on sustained profit taking activity which saw 20,970 shares changing hands across 11 trades. The equity closed the day at €0.78c5, 19 per cent lower than its previous week's closing price.
Bank of Valletta shed 10c or 1.8 per cent as 3,441 shares were sold at the €5.50 level. Yesterday, the Bank said that Moody's has reaffirmed BOV's ratings, all of which carry a stable outlook. Moody's has confirmed the bank's standing as the leading banking franchise in Malta, its adequate recurring earning power reflected in stable interest rate margins, ample liquidity and solid funding profile, and acceptable capitalization levels.
Middlesea Insurance shed 8c or 2.2 per cent as 1,154 shares were sold across four transactions, squeezing the price back down to the €3.52 level.
Weekly eurozone economic review
Recent economic data suggests that the European Central Bank (ECB) will hold on to the current interest rate level for some time as the last inflationary figure confirmed the ECB's woes on price pressures. Consumer Price Inflation reached 3.5 per cent year on year in March, well above the ECB's two per cent target ceiling.
Moreover, the economy has shown further signs of resilience, as the IFO survey of business confidence, based on 7,000 German executives came out very strong for the month of March.
Indeed the index has increased for three straight months and is now at its highest level since August, the month of the onset of the credit crisis. Increased demand from Central/Eastern Europe and Asia has managed to offset some of the strong euro's negative impact on exports, as the single currency is trading close to an all-time high versus the dollar.
Corporate lending also remains robust, with the latest ECB lending survey indicating that Germany accounted for 100 per cent of the increase in credit growth in the eurozone in past six months, offsetting weakness elsewhere.
Germany, the largest economy in the euro area, is definitely playing a major part in keeping the region away from recessionary waters.
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.