Financial news

Yesterday's session at the Malta Stock Exchange, selling pressures in four equities dragged the MSE index lower by 0.29 per cent to end the day at 3,326 points. The day's trading consisted of 16 deals spread over seven different equities,

The highest percentage drop was registered in Datatrak Holdings where a mere 1,000 shares were traded over a single deal, with the equity closing down by 10c9 or 35.16 per cent at €0.20c1.

Another single trade in Maltapost to the tune of 2,000 shares was executed at the €0.70 level, which equates to a loss of 5c over its previous closing price.

Middlesea Insurance suffered a similar fate, with exactly the same limited volume over two deals. The insurance company shed 5.45 per cent to close the session at €2.55.

All trading activity in Bank of Valletta was executed in the range of €3.635 and €3.62, lower than the prior price level. The bank's shares were the day's most liquid and actively traded equity, with a total of 7,160 shares changing hands across six transactions.

FIMBank, HSBC Bank Malta and International Hotel Investments all traded unchanged yesterday.

In the fixed interest sector of the market, activity was spread across three corporate bonds and five government stocks. The 5% MGS 2021 attracted the highest turnover, with 144,423 nominal, pushing the price down to €104.50. The highest percentage increase in the local bond market was registered in the fungible October issue of the 5% MGS 2021 as a mere 1,000 nominal were swapped at a price of €104.63 therefore trading up by 5.16 per cent.

Weekly eurozone economic review

Economic data released in the eurozone over the past week was of no breather to investors and consumers alike.

Falling demands for cars cut eurozone industrial new orders by more than expected in September from August, pointing to a deep industrial recession. Orders in the 15-country currency area fell 3.9 per cent month on month for a 1.1 per cent year on year contraction according to the EU Statistics office, Eurostat.

The fall in orders came mainly due to a 5.1 per cent month on month plunge in demand for metals and fabricated metal products as well as a 3.8 per cent fall in volatile demand for ships, planes and trains. This sharp pull back in demand was fuelled by production cutbacks among carmakers. In Western Europe, new car registrations in October plunged 15.5 per cent.

EU forecasters are expecting the eurozone's economy to contract by 0.4 per cent next year and return to modest growth in 2010. Inflation is likely to fall below the European Central Bank's (ECB) goal of slightly less than two per cent next year and the following year. With regards to this, ECB Council member Alex Weber stated: "Owing to remarkable decline in inflationary pressure in the medium term and rapidly deteriorating economic prospects, the euro-area monetary policy in my view has enough leeway for further easing if necessary."

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.