Financial news

The MSE Index gained 0.3 per cent during yesterday's trading session buoyed by gains in its largest and third largest components which offset declines in Bank of Valletta, to close at the 4,167 mark. All components of the banking sector attracted trades.

HSBC Bank Malta gained 2c or 0.5 per cent to close the session at €3.83. Investors are eagerly awaiting the company's interim results for the six-month period ending June 30 and the declaration of an interim dividend which is due to be announced on Friday. The day's activity consisted in 12,860 shares, carrying a market consideration of €49,184, which were exchanged across 11 trades.

Bank of Valletta was the day's most actively traded equity with 24,033 shares being swapped across 15 deals. The equity dropped to a low of €4.65 before recovering slightly towards the end, thereby terminating the session just 2c or 0.4 per cent lower at €4.66.

FIMBank attracted the highest volume with a grand total of 138,500 shares changing hands over four trades. The trade finance specialist closed unchanged at $1.87, leaving 670 shares best bid at $1.84 against a supply of 15,000 shares carrying an offer price of $1.875.

Two trades were executed in Lombard Bank Malta for an aggregate total of 10,500 shares which were struck without altering its previous closing price of €2.90.

The other positive mover was International Hotel Investments which gained 1c or the equivalent of 0.9 per cent to reclaim the €1.05 level.

In the fixed interest sector of the market activity was spread across two corporate bonds and seven government stocks. All sovereign issues trading during the session moved lower in price following their European counterparts as investors demanded a higher yield for their money.

Weekly eurozone economic review

Inflation data across the globe have surprised on the upside with inflation figures above target on both sides of the Atlantic. While US inflation jumped to five per cent, its highest reading since 1991, eurozone Consumer Price Index (CPI) moved up to four per cent in June, twice the European Central Bank's (ECB) target rate of two per cent. Among the major European economies, Spain is experiencing the sharpest run-up in prices with CPI at 5.1 per cent in June, followed closely by Italy and France at four per cent and Germany 3.4 per cent.

Meanwhile, the German investor confidence fell to a record low in July as surging inflation and rising interest rates dimmed the outlook for growth in Europe's largest economy. Germany accounts for approximately one-third of the euro area Gross Domestic Product. The Zew Centre for European Economic Research said its index of investor and analyst expectations fell to 63.9, the lowest level since it was first compiled in December 1991, from -52.4 in June. Economists expected a decline to -55, according to a median of 37 forecasts in a Bloomberg news survey. Across the eurozone as a whole, industrial output fell by two per cent in June compared to May, while car registration across the region fell by eight per cent year on year.

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.