During the second trading session of the week the Malta Stock Exchange Index registered a mere decline of 0.04 per cent to end the trading session at 3,233 points, further cementing the negative trend from Monday's results. In a subdued trading session activity was spread over three equities with a total of 10 deals swapped for a total volume of approximately 28,000 shares.
Santumas Shareholdings was the most liquid and actively traded equity with a total of five deals exchanged for a market consideration of 24,673 shares. The closed-ended collective investment scheme was the only equity to trade at a profit with price increasing by 10c or 3.25 per cent to close at € 3.20. This was the first session where the Santumas equity traded for the year 2009.
Bank of Valletta was the second most actively traded equity with activity spread over just 4 deals. The bank incurred a negligible loss in price when it shed four tenths of a cent over the previous trading day to close at € 2.994. Trading was spread during the first 10 minutes of the session and touched an intraday high of € 2.996 only to decline during the last transaction for the day.
Trading in Go failed to move the previous closing price of €1.87 as activity was spread over a single deal for a total market value of € 2,805.
In the fixed interest sector of the market activity was significantly higher where six corporate bonds and seven government stocks were traded. The highest turnover in the corporate bond sector was registered in the eight per cent Bank of Valletta 2010 as a total of 50,000 nominal were exchanged over two transactions at the price of $106.25. In the fixed income market the five per cent MGS 2021 gained 155 ticks over previous price to end the day at €104.1.
Weekly eurozone economic review
The European Central Bank (ECB) delivered as expected the 50 basis points cut in the reference rate to two per cent. Under more of an unexpected note, Jean-Claude Trichet in his comments at the press conference after the rate decision indicated that he is not expecting any more rate cuts for February. To a certain extent such a stance was also taken in December's meeting, but as we all know the ECB's intention was overwhelmed by the flow of bad data.
The ECB's President emphasised that the January cut would not only take into account for the recent economic weakening but would also anticipate a further significant weakening in the future.
Industrial production and Construction output continued to lose further ground. Industrial production dropped 1.6 per cent in November for a year-on-year figure of -7.7 per cent.
Construction output reached a yearly figure of -4.7 per cent down from minus four per cent in October.
On a more positive note the German Zew index of economic sentiment came in at -30.8, much sharper than the expected -43.1. Although this has provided some slight glimpse of optimism, the investor's sentiment remains very weak.
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.