The MSE Index recouped its previous session's entire decline yesterday, as renewed buying activity in the largest listed equity and sustained purchases in GlobalCapital helped the MSE Index gain 0.6 per cent to close the session at 4,545 points.
GlobalCapital was, for the second consecutive session, the day's top gainer with the equity racing ahead by a further 18c or six percentage points to terminate at the €3.17,6 level. The day's activity consisted in 13,240 shares which were purchased across six transactions, with investors' interest driven by the recent agreement on the acquisition of an 85.5 per cent stake in Mediterranean Bank plc, subject to due diligence and regulatory approvals.
HSBC Bank Malta was the main provider for yesterday's lift in the Index, as the heavyweight banking equity recouped 6c7 or 1.6 per cent as 9,000 shares were purchased across eight transactions.
A single trade in FIMBank shares saw the equity close 0.8 per cent higher at $1.91,5 while elsewhere in the market Bank of Valletta traded steady at the €5.29 level, leaving outstanding demand best bid at €5.25 against an unsatisfied supply of 800 shares offered at €5.29.
Grand Harbour Marina remained unchanged during the session, with the price trading at the €2.25 level. Turnover here consisted of a total of 6,455 shares, changing hands across four deals.
Go was the only equity which closed lower, losing 1c5 or 0.5 per cent as two investors swapped 1,000 shares at €2.999. At this price level the company is still the fourth largest component in the MSE Index, with a price earnings ratio of 18.18.
Weekly eurozone economic review
In the foreword to the European Central Bank's 2007 annual report the European Central Bank President Jean-Claude Trichet said that the "present significant market correction is not over". While overnight interest rates have been successfully returned to "stable levels" Mr Trichet said "tensions remain" at longer maturities in the money market.
European Central Bank hawkish rhetoric stepped up a gear this week as March inflation was revised higher to 3.6 per cent per annum - well above the European Central Bank's target of close to, but less than two per cent, this represents a substantial rise from February's 3.3 per cent. The current high level of eurozone consumers' inflation expectations points to a clear risk that consumers will push further for higher wages growth to compensate.
Meanwhile growth in the region slowed in February. Industrial production grew by 3.1 per cent down from 3.3 per cent in January. Slower growth in the coming months should see inflation begin to fall but the chance of an interest rate cut before the end of summer appears limited. Business confidence also started to ease in the countries two largest economies.
The external sector continues to defy the strong euro. The latest eurozone trade news in conjunction with the encouraging industrial production data released suggests that the region is still coping well with the twin headwinds of the strong euro and the slowing global demand.
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.