Financial news

Trading activity during the mid-week session on the Malta Stock Exchange ended on a positive note when the Index gained a marginal 0.4 per cent to terminate at the 3,078.5 level. Activity in the equity market was muted for the second consecutive day as investors transacted just 13 deals across five different equities. The majority of the listings which traded yesterday closed.

HSBC Bank Malta was the only equity to register an increase during the session, rising by 3c or 1.1 per cent to close at €2.71.

This helped the listing to regain the losses it incurred during the previous session. Investors in the financial services company traded a total of 3,000 shares spread over three deals for a market consideration of €8,120.

Bank of Valletta shares closed for the third consecutive day unchanged from last Friday's closing price of €2.90. The bank was in relative terms the most actively traded listing when 2,884 shares were transacted across four deals.

Similarly, Lombard Bank Malta also failed to register any movements as the equity closed unchanged at €2.55. Activity in the bank consisted of 1,539 shares which were exchanged across two deals.

Outside of the banking sector, the only two other active equities were Go and Maltapost, both of which ended the session unchanged at €1.80 and €0.69 respectively. In the former investors swapped 5,500 shares over three deals, while in the latter two investors transacted an aggregate of 1,497 shares.

Despite not being active during the day's trading session, RS2 Software issued its Half-Yearly Financial Statements for the period ended June 30, 2009. During the period the company generated revenues of €2.685 million, which amounts to half the revenue it generated during the same period last year. Profit after tax for the period amounted to €200,829.

Middlesea Insurance also announced that it will publish on August 25, 2009 its interim financial statements for the first six months ending June 30, 2009. The company further explained that due to the difficult trading conditions of its Italian subsidiary, it could have an adverse impact on the half yearly results of the Group.

Weekly eurozone economic

The economic data for the 16 country members of the euro during the past week was focused on the positive growth results in the eurozone's two largest economies, Germany and France.

The eurozone's economy shrank less than expected in the second quarter, as Gross Domestic Product contracted by only 0.1 per cent between April and June.

Economists had initially expected a 0.5 per cent decline, but revised their forecast to a negative 0.1 per cent after the release of better than expected GDP data for Germany and France.

In fact, the two largest economies in the eurozone surprised analysts by posting a 0.3 per cent quarterly growth. Even Portugal and Greece saw a 0.3 per cent quarterly growth in the second quarter. Meanwhile, eurozone inflation dropped 0.7 per cent in July, deeper than the 0.6 per cent fall initially estimated, setting a new record decline on cheaper energy and food.

This is the second consecutive month of price declines in annual terms after June's 0.1 per cent drop, and estimates show that inflation is likely to remain in negative territory throughout summer as energy and food prices will continue to exert a downward pressure on inflation.

Finally, the German ZEW survey on analysts' and investors' sentiment in the country has registered an unexpected increase, which took the indicator to its highest level since April 2006.

In fact, the index for economic expectations rose to a reading of 56.1 in August from its previous 39.5 a month 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.