Financial news

The Malta Stock Exchange index edged up less than one point in trading day as 130,465 shares were traded in 54 deals across nine issues. Only two issues managed to buoy the equity market as several issues closed down.

Maltapost plc recovered from the losses it experienced last Tuesday as shares in the postal operator gained 4c, or 5.5 per cent, to end the session at €0.77.

Grand Harbour Marina plc also managed to make significant gains yesterday as its shares were up 12c1, or almost 7.0 per cent.

Issues to finish in negative territory included Santumas Shareholdings plc, whose stock closed down 10c, or 3.9 per cent, to close at €2.50. The momentum that Bank of Valletta plc had garnered over the last few trading sessions waned yesterday as the shares in the local retail bank lost 0c5 to end the session at €3.495.

Simonds Farsons Cisk plc also finished on the downside as the food and beverage wholesaler and retailer's shares lost 2c, or 1.2 per cent, to close at €1.70. Other issues which closed down yesterday were Middlesea Insurance plc which gave up the 0c5 gains it achieved on Tuesday to close at €0.77, and Go plc which lost 0c1 to close at €2.299.

Stocks which saw trading action but failed to register a change in their closing price were FIMBank plc, which closed at US$1.18, and HSBC Bank Malta plc which ended the session at €3.90.

Weekly eurozone economic review

The eurozone's economic recovery slowed down in the final quarter of last year as Gross Domestic Product (GDP) barley expanded, with France the only one of the euro area's four biggest economies to record a growth.

The eurozone's GDP increased by just 0.1 per cent in the last quarter of 2009 after a rise of 0.4 per cent the previous quarter.

This was weaker than markets had expected. Solid quarterly gains in France and Netherlands were partly offset by falls in Italy and Spain. Meanwhile, Ireland, Greece and Cyprus remained in recession.

This figure was dragged down by the area's largest economy, Germany, since it registered a quarter-on-quarter stagnation, while Portugal also remained stagnant.

On the same negative note, industrial production fell by 1.7 per cent during the month of December compared to an upwardly revised increase of 1.4 per cent during the previous month.

This implies that the sector has had significant impact on the drag of GDP growth in the last quarter of last year. On a yearly basis, the eurozone's industrial production fell by 5.0 per cent.

Furthermore, the German ZEW investor confidence index declined for the fifth month in February from a reading of 47.2 registered the previous month to 45.1. This has probably reflected more the concerns on the eurozone's fiscal problems rather than specific concerns about Germany. This index tended to be unduly influenced by developments in financial markets and will have been damaged by worries that Germany might bear a heavy burden from any Greek bail-out.

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.