Financial news

In a rather active session at the Malta Stock Exchange yesterday, the MSE Index dropped slightly by 0.27 per cent to close at 3,821 points. The quadruple play telecommunications operator - Go - was the main drag on the Index following a bout of selling activity. Overall activity was spread over nine equities with an aggregate turnover of €135,565 spread over 41 deals.

Go was the day's biggest laggard with a total turnover of 8,725 shares changing hands across eight trades. Trading in the equity commenced at the €2.25,1 level with the price moving lower throughout the session before closing at €2.20,1. This translates into a drop of 10c9 or 4.72 per cent.

RS2 Software suffered a similar fate, though the percentage decrease was smaller. In fact, a sole transaction for 9,300 shares struck at the €0.821 level was enough to push the price lower by 0.97 per cent. Lombard Bank Malta's share price also ended lower by 0.36 per cent when 9,000 shares were swapped across five deals.

Activity in Bank of Valletta saw deals being struck at a higher level than its previous closing price, only to end the session slightly lower when the last trade of the day was matched at €4.309.

Malta International Airport traded lower by the slimmest of margins to close at €2.99,9. On the other hand, three deals in Maltapost for a total volume of 9,089 shares, caused the equity to bounce up by 3.80 per cent to end the day at €0.82.

International Hotel Investments was by far the most liquid equity of the session, with 24,994 shares being exchanged over three transactions. This interest saw the equity close at €1.02, or 0.49 per cent higher than its previous reading.

Two minor trades amounting to a mere 560 shares in HSBC Bank Malta brought about a minor increase in price which ended closed at €3.25,1.

Crimsonwing's share price closed unchanged when 751 shares were swapped between two investors at €0.50.

Weekly eurozone economic review

The euro-area Consumer Price Index was reconfirmed at 3.8 per cent year on year in August, 0.2 percentage points below the July peak. Food and energy inflation slowed while core inflation accelerated mainly due to the reversal of summer sales related dip in July, there also appears to be some upward pressure in the services industry. On a more positive note the Zew survey of economic sentiment came in above consensus. The main factors for the improvement were probably the lower oil price and depreciation in the euro.

Meanwhile, Europe's manufacturing and service industries contracted at the fastest pace in almost seven years in September as the credit market seizure intensified and companies scaled back production in response to slowing orders.

Royal Bank of Scotland plc composite index dropped to 47, the lowest since November 2001, from 48.2 in August according to Reuters plc. The Economist had a forecast of a decline to 47.8 according to a median of 21 estimates in a Bloomberg News survey. The index is based on a survey of purchasing managers by Markit Economics in London and a reading below 50 indicates contraction.

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.