Financial news

Following an active session on the Malta Stock Exchange yesterday, the MSE Index gained the equivalent decline registered on the previous day to close at 3,360 points. The two larger banks saw positive sentiment with some renewed interest pushing the Index higher.

Bank of Valletta was seen trading positively throughout the session, with trading starting off at €3.38 and thereafter moving higher to eventually end the day at €3.44, representing an increase of 19c or 5.85 per cent. Total turnover stood for 5,554 shares spread over seven deals.

HSBC Bank Malta gained 3.5 per cent on the largest volume of shares traded on the day as 20,700 shares were dealt across nine transactions to close at €2.899.

A low turnover in International Hotel Investments of 600 shares pushed the price higher by 1.06 per cent to end the day at €0.95, while Lombard Bank Malta traded higher by the slimmest of margins to close at €2.948.

Selling activity in FIMBank to the tune of 7,817 shares caused a decline of 5.06 per cent to end the session at $1.50. Maltapost also traded at a discount of 3.42 per cent when 5,000 shares were swapped over four deals at €0.79.

Malta International Airport suffered a similar fate, as the airport operator marched on its recent declines. Turnover consisted of 8,400 shares dealt over nine trades thereafter closing at €2.50, thereby dropping by 1.96 per cent.

Plaza Centres, Middlesea Insurance and Go all traded lower, while RS2 Software's share price closed unchanged when 16,500 shares were exchanged over six trades at €0.75.

In the fixed interest sector of the market, activity was spread across five corporate bonds and five government stocks. The 6.15% Bank of Valletta 2010 attracted the highest turnover, with 40,274 nominal, as it closed unchanged at €100.25. The 5.5% MGS 2023 had 23,294 nominal swapped over a sole transaction, pushing the price lower by 1.82 per cent to close at €104.77.

UK economic review - weekly round-up

The European Commission's survey of business and consumer confidence recorded its largest ever monthly fall from its inception in 1985, to reach a 15-year low. The expectations index of German IFO, a good leading indicator of economic activity, also dropped to a new record low. It suggests that the region's largest economy and the world's largest exporter is suffering badly from the global slowdown.

Some relatively good news was issued from the inflation front, as the eurozone Consumer Price Inflation fell to a 10-month low of 3.2 per cent in October from 3.6 per cent in September. The headline figure dropped in concert with the easing of oil prices but core consumer prices which are measured by excluding volatile unprocessed food and energy have also registered declines. This will provide welcome breathing space for the European Central Bank, which is expected to cut rates by 50 basis points to 3.25 per cent at tomorrow's ECB meeting.

Lowering of inflationary pressure was also evident in the Industrial producer's prices within the 15-country currency area. The European Union's statistics office stated that the Producer's Price Index (PPI) fell by 0.2 per cent month on month for a 7.9 per cent rise 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.