The Malta Stock Exchange Index lost over eleven points, or 0.3 per cent yesterday, to close at 3,845.020 in light trading of 30,272 shares across 25 deals.
Trading was heaviest in the stock of Bank of Valletta plc, whose shares traded in positive territory for most of the session, yet failed to hold on to those gains late in the day and closed unchanged at €3.150 on volume of 16,152 shares across 16 trades.
HSBC Bank Malta plc shares witnessed a second day of losses, losing 4c, or 1.2 per cent, to close at €3.420 in seven deals for a total of 10,720 shares. On Tuesday, HSBC shares fell 6c8, or 1.9 per cent, on light volume.
Still in the banking sector, FIMBank plc shares put in the day’s sole positive performance by climbing 2c, or 2.2 per cent, in a single deal of 2,000 shares, to close at US$0.940.
The other equity to trade in the session, yet close unchanged, was that of Malta International Airport plc, which finished at €1.700 in a single deal of 1,400 shares.
Trading in the corporate bond market finished only slightly higher, as three of the seven bonds to trade in the session closed in positive territory, albeit marginally, while the remainder closed unchanged. Volume was light as €165,300 nominal changed hands across 18 deals. The day’s big mover was the 4.8 per cent Bank of Valletta Plc Sub €2020 bond, which gained 0.4 per cent, or €0.39, to close at €102.890, in three deals for a total of €10,000 nominal.
Weekly Eurozone Economic Review
In the eurozone, the European Central Bank (ECB) left the benchmark interest rate at record low level of one per cent, unchanged from the previous meeting. In the meantime, a separate report showed that the inflation rate in the euro area increased to the fastest pace in more than two years in December. This increase was mainly led by higher energy costs as these rose by 11 percent from a year earlier after they increased by 7.9 per cent in November.
The Consumer Price Index (CPI) increased to 2.2 per cent in the last month of last year when compared with the same month last year, after a revised increase of 1.9 per cent in November. The ECB President, Jean-Claude Trichet said that inflation pressure in the euro region may remain above the bank’s two per cent target in the near future. As a result, he signalled that he will be willing to increase the interest rate if needed. However, he is expecting the rate to moderate towards the end of the year. Other ECB officials subsequently distanced themselves from Mr Trichet comments.
In the external sector, the trade balance registered a deficit of €0.4 billion in November, after a downwardly revised figure of a €4.7 billion surplus the previous month. Economists were expecting the trade balance to register a surplus of €3.3 billion. Finally, analysts remained optimistic on the future of the economy in Germany, as the ZEW index of investor and analyst expectations, which aims to predict developments six month ahead, increased for the third consecutive time, at a slightly more than expected 15.4 in January from 4.3 in December.
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.