Financial news

Trading activity for the mid-week session at the Malta Stock Exchange resulted in a negative outcome as the Index declined marginally to close at the 2,949.47 level. Activity in the equity market increased slightly from the previous session as investors exchanged an aggregate 24 deals in four different listings.

Bank of Valletta was the sole equity to register an increase in price during the session as the listing gained 1c or 0.4 per cent to terminate at €2.69, despite initially trading at an intra-day low of €2.63, subsequent buying activity pushed the price up to its present standing. The financial services company was also the session's most actively traded equity as 13,957 shares were swapped over 13 deals.

There was no change in the price registered for HSBC Bank Malta, as the equity closed unchanged for the second consecutive day terminating at €2.61. Activity in the bank was spread over three deals for a market consideration of €6,264.

The share price of Go decreased by 1c, which equates to a decline of 0.6 per cent to terminate the session at €1.79. Investors in the quadruple play communications' company transacted an aggregate 5,000 shares over four deals.

Malta International Airport was the day's laggard as the equity shed 5c1 or 2.4 per cent to end the session at €2.05. Trading activity in the airport operator resulted when investors struck four deals for a market value of €14,830.

Despite not being active for the day's trading session Plaza Centres announced that the board of directors will be meeting on Monday, July 27 to consider and approve the company's interim financial statements for the half year ended June 30. Meanwhile, Mediterranean Investments Holding has announced that it concluded an agreement for the construction of a 40-storey high rise tower in Tripoli, Libya.

In the fixed interest sector of the market, activity was spread over four government stocks and eight corporate issues.

The best performance in the corporate securities was registered in the 6.25 per cent International Hotel Investments 2015-2019 which gained 100 ticks over a single deal to close at €101.

Weekly eurozone economic review

The economic headlines emanating from the 16-country member of the euro was largely negative as German economic sentiment declined while the increase in industrial production in the eurozone was minimal.

In Europe's largest economy, Germany, the headline ZEW expectations index, which measures analyst and investor sentiment in the country, fell in July for the first time since October 2008. It dropped to a reading of 39.5 from its previous reading at 44.8. Despite being still above average levels, this still marks a disappointment relative to market forecasts for a further increase in the index. Meanwhile, the steep drop in exports and corporate investment in the eurozone resulted in a year-on-year economic contraction of 4.9 per cent from a previous estimate of 4.8 per cent. Furthermore, the Single Currency Area's exports plunged 8.8 per cent quarter on quarter as the global financial crises triggered the worst recession since World War II in many parts of the world. A steep drop in fuel costs drove down eurozone consumer prices year-on-year for the first time in June, falling 0.1 per cent, which is the first ever negative inflation in the euro area.

Eurozone industrial production expanded in May on a month on month basis for the first time since August last year boosted largely by capital and non-durable consumer goods. While analysts had forecasted production to increase by 1.2 per cent, the actual increase was just 0.5 per cent. Moreover, industrial production declined by 17 per cent when compared to a year earlier.

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.