Financial news

Trading during the mid-week session at the Malta Stock Exchange ended on a marginally negative note as the index dropped less than a tenth of a percentage to terminate at 3,057.5 points. Activity in the equity market was, like in the previous session, subdued as investors transacted just a mere 12 deals over three different listings, all of which in the banking sector.

HSBC Bank Malta was the session's only gainer as the equity increased in value by two cents, which equates to a 0.8 per cent increase to close at €2.67. The financial services company was also the day's most liquid and actively traded equity as investors swapped 6,000 shares over six deals for a market consideration of €15,936.

On the contrary, Bank of Valletta ended the session in the red as the equity dropped by 4c9 or 1.7 per cent to terminate at €2.85, despite trading at an intra-day high of €2.869 when selling activity suppressed the price to its current level. Investors in the bank exchanged an aggregate of 4,720 shares over five deals. Bids of 87 shares at €2.85 and offers of 2,000 shares at €2.88 were the best unsatisfied positions at the close of trading.

Lombard Bank Malta was the day's sole non-mover as the equity closed unchanged at €2.60. Activity in the Bank was relatively muted as two investors exchanged a total of 1,400 shares.

In the fixed interest sector of the market, activity was spread between four government stocks and 10 corporate bonds.

In the corporate debt market the only gainer was the euro tranche of the seven per cent FIMBank 2012-2019 which rose by a mere 10 ticks when investors transacted €24,000 nominal over four deals to close at €101.60.

Weekly eurozone economic

The economic indicators for the eurozone countries during the past week were focused on the European Central Bank's meeting. However, the week also contained important economic data regarding retail sales, industrial production and investor sentiment.

The European Central Bank as expected, kept interest rates on hold at a record low of one per cent, hinting however that growth could return sooner than previously thought. ECB president Jean Claude Trichet explained that at the current level, interest rates remain "appropriate", adding that a fall in consumer prices in the eurozone's recession-bound economy was temporary. Meanwhile, retail sales in the 16-country member of the euro declined by -0.2 per cent month-on-month in June when economists were expecting an increase of 0.3 per cent. This pointed to ongoing weak consumer demand which raised questions on whether the economy was poised for a quick recovery.

Nevertheless, investor and analyst sentiment in the region improved in August to register its highest level in a year, after worsening unexpectedly in July. In fact, investor and analyst sentiment rose to a reading of -17.0 in August from its July low of -31.3.

Industrial production in the eurozone has unexpectedly declined by 0.6 per cent on the month in June and 17 per cent year-on-year, defying more optimistic economists who anticipated a 0.3 per cent monthly gain and a 16 per cent annual fall.

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.