Financial news

Trading activity for the first day of the week at the Malta Stock Exchange started on a positive note as the index edged up marginally to close at the 2,950.45 level. Activity in the equity market was unusually low as investors were active in just a single listing in the final minutes of the trading session.

Bank of Valletta was the sole active listing in the equity market and a gainer as the price of its shares increased by 1c1 which equates to an increase of 0.4 per cent to terminate the session at €2.67. Trading activity for the financial services company consisted of 1,300 shares spread over three deals for a market consideration of €3,459. At the end of the session there were a total of 190 shares as best bids at €2.60 while the best offer was made up of 2,108 shares at €2.67.

In the fixed interest sector of the market, activity was higher than in the equity market and spread over three government stocks and eight corporate issues.

The best performance in the corporate securities was registered in the 6.2%-6.8% International Hotel Investments 2013 which increased by 190 ticks over very low volume of just €800 nominal swapped across a single deal to close the session at €101.90.

Turnover in the corporate debt issues was highest in the 4.6% HSBC Bank Malta 2017 as investors transacted an aggregate €48,000 nominal over four deals to close marginally higher by 0.3 per cent at €99.79.

In the government securities the 5% MGS 2021(I) registered the highest turnover as investors exchanged a total of €104,747 nominal. The security gained a mere 0.3 per cent over four deals to terminate the session at €102.90.

Economic indicators for week starting July 13

The week ahead will feature important economic indicators on both sides of the Atlantic which will be focused on inflation figures as well as unemployment data for the United Kingdom.

In the US, the Empire State Index, which is a regional survey on manufacturing production, is expected to increase from a previous low of -9.41 to a reading of -5 for this month. Meanwhile, economists are anticipating no surprises for a month on month reading of the Consumer Price Index, which is expected to increase to 0.6 per cent from a previous 0.1 per cent mainly due to an increase in petrol prices over the past month. Nevertheless, the year-on-year inflation rate is expected to fall further into negative territory.

On the other side of the Atlantic, Eurozone Consumer Price Inflation is expected to increase for a month on month reading of 0.2 per cent, just slightly higher from its previous 0.1 per cent. The recent skid on the stock markets and a drop in the Sentix survey indicate that the ZEW index may go down after its recent gains. Meanwhile, industrial production for the region is expected to follow the positive lead of the individual countries.

In the United Kingdom, unemployment figures for three months in May are anticipated to have reached the 7.4 per cent level from their previous 7.2 per cent. Similar to the other two economies here we shall also have the June inflation figure which, month-on-month is expected to have fallen to 0.3 per cent.

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.