Financial news

Trading in the Malta Stock Exchange resulted in a negative showing yesterday as financial services stocks pulled the index down more than 19 points, or 0.5 per cent, to close the day at 3806.172 on moderate volume of 73,032 across 56 trades.

Shares of Middlesea Insurance plc continued their plummet as the insurance company's stock lost another 6.4 per cent, or 5c, to finish the session at €0.73. This has been the third consecutive decline for MSI's stock which has dropped almost 16 per cent in the same number of days.

Bank of Valletta plc's stock also compounded Tuesday's losses yesterday as it lost another 5c1, or 1.5 per cent, to close at €3.299. FIMBank plc also finished the day lower by 1c, or 0.9 per cent, to close at €1.17 in a single deal of 4,000 shares.

Continuing with financial stocks, Lombard Bank Malta plc closed down 0c1, or less than 0.1 per cent, to end the day at €3.109. Another stock to end lower on the day was Grand Harbour Marina plc, whose shares traded hands in two deals of 6,134 shares and closed at €1.88, down 2c.

Other issues which saw trading but managed to close unchanged were HSBC Bank Malta plc which closed at €3.90 on light volume of 900 shares, Plaza Centres plc which closed at €1.69 on 2,500 shares, and Go plc which closed at €2.28 on 18,600 shares.

Weekly eurozone economic review

Economic data from last week highlights that, the eurozone broadly has gained some of the recovery momentum. A monthly survey by the European Commission showed the Economic Sentiment Indicator (ESI) for the 16-country area in January rose to 95.7 points from a revised 94.1 the previous month, much more than expected and the highest since June 2008.

According to the Eurostat the unemployment rate in the eurozone rose to 10 per cent of the workforce in December from a downwardly revised 9.9 per cent in November, the highest jobless rate since August 1998. This trend was not evident in Germany where unemployment rose less than forecast this month.

On a slightly negative note, eurozone inflation inched up one per cent year-on-year during the month of January, much less than expected and up from 0.9 per cent in December. Energy, particularly oil, and food prices due to bad weather conditions, are likely to have been the main driver of the January increase. Meanwhile, Producer Price Index (PPI) edged up in December by 0.1 per cent against the previous month and registered a smaller-than expected decline of three per cent against a year earlier.

In the meantime, the eurozone manufacturing sector grew at its fastest pace in two years in January to a reading of 52.4. However, there continues to be a widening divergence between sluggish Spain, Greece and Ireland compared with buoyant Germany, France and Italy, which could hinder the recovery in the euro area as a whole. Finally, the German IFO Index, which is a widely observed early indicator for economic development was firmer than expected with a rise to 95.8 for January from 94.6 previously.

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.