Financial news

Trading during the mid-week session at the Malta Stock Exchange resulted in a dismal outcome for the Index which slipped by two per cent to terminate at 3,153.19 points. Activity in the equity market increased from the previous session as investors were active in seven different listings transacting a total of 37 deals.

HSBC Bank Malta registered the day's most notable decline as its shares depreciated by 18c, which equates to a six per cent drop to close at €2.80. The financial services company was nevertheless the most actively traded equity as investors swapped an aggregate 15,673 shares over 15 deals.

Bank of Valletta also declined on the day's trading activity as the equity dropped by 3c or one per cent to terminate at €2.97 even though it was trading at an intra-day high of €3.001. Investors in the Bank swapped a total of 6,769 shares over 10 deals for a market value of €20,297.

Plaza Centres was also on the list of losers during the session albeit decreasing by a negligible one-tenth of a cent to close at €1.649. Two investors in the commercial centre swapped 10,000 shares for a monetary value of €16,490.

Go was the day's best performer as its shares rose by 5c or 2.9 per cent to close at €1.80.

The quadruple play communications' company was also the day's most liquid equity as investors exchanged 17,860 shares over seven deals.

Likewise, a positive performance was registered in Middlesea Insurance as its shares increased in value by 0c9 or 0.5 per cent to terminate the session at €1.759. Trading activity in the insurance company resulted when 1,500 shares were swapped over a single deal.

Malta International Airport and Lombard Bank Malta were the sole non-movers as their prices closed unchanged at €2.35 and €2.60 respectively. Volume was subdued in the airport operator as two investors transacted a mere 850 shares, while in Lombard Bank 2,726 shares were exchanged over two deals.

In the fixed interest sector of the market, activity was spread over six government stocks and nine corporate bonds. The worst performer in the corporate debt market was the seven per cent FIMBank USD 2012-19 which decreased by 1.46 per cent as a mere $1,200 nominal were transacted over a single deal to terminate at $101.00. In the sovereign debt market the highest turnover was registered in the 5.7 per cent MGS 2012 (III) as €2,311,647 nominal were exchanged over two deals to end at €107.63.

Weekly eurozone economic review

The economic data for the 16-country member of the euro over the past week was focused on the growing number of people out of work. On a more positive note, however, economic indicators such as manufacturing data in the eurozone are clearly pointing to a recovery.

The unemployment rate in the Euro-area has ticked up further in June to reach 9.4 per cent from its previous 9.3 per cent in May, which is the highest rate of unemployment in the last 10 years. This was still lower than the 9.7 per cent predicted by analysts and was probably the result of various state schemes to preserve jobs. More than three million people have lost their jobs in the last 12 months to bring the total number of unemployed in the region to almost 15 million.

Meanwhile, producer prices in the eurozone increased 0.3 per cent month-on-month in June but decreased 6.6 per cent year-on-year. This was the biggest drop since records began in 1996 and was mainly due to a 15 per cent drop in energy costs. However, prices excluding energy and construction still went down by 3.5 per cent.

The Purchasing Managers' Index manufacturing rose to a reading of 46.3 in July from its prior 42.6. This was the second-biggest monthly rise in 12 years and is an indication that manufacturing is getting closer to the 50.0 mark that signals growth. Finally, economic sentiment in the eurozone has also increased in July to its highest level in eight months. The sentiment improvement was fuelled by all surveyed sectors, services, consumers, retail and industry, while in construction morale stagnated.

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.