Financial news

The opening session of the week saw the Malta Stock Exchange Index advance by 0.65 per cent to 3,083.6 points helped single-handedly by gains in Bank of Valletta shares. Volumes were significantly subdued with activity spread across three different listings.

Bank of Valletta was the day's only gainer, advancing by a solid €0.10 or 3.5 per cent to reclaim the psychological important three-euro level. Trading activity in the equity consisted of 3,924 shares which were dealt across seven transactions.

Two single deals in both Go and FIMBank left these equities unchanged for the day, at €1.80 and US$1.289, respectively. The former announced last week that its board of directors will be meeting at the end of the month to discuss the company's interim results for the period January 1 to June 30.

In fact, a number of companies are scheduled to publish their interim results over the next few days with Middlesea Insurance and 6PM Holdings kicking off the process today.

Elsewhere, trading in the corporate bond market was marked by some selling pressure as investors started re-aligning their portfolios ahead of upcoming corporate issues. A total of 10 corporate bond issues were dealt in during the day with aggregate turnover reaching €562,471. Activity in the sovereign debt market was spread across four different issues with an aggregate turnover of €685,521.

The week ahead - Economic indicators for week starting August 24

Economic data emanating from the old continent will be relatively thin, with confidence indices stealing most of the limelight. On the other side of the Atlantic, a barrage of economic data is lined up.

Confidence indices in the euro-area are expected to continue on their recent positive run. The consumer, economic, industrial and services confidence indices for the month of August are all expected to come in above the levels registered in July. Meanwhile, housing data in the United Kingdom is expected to give further signs of recovery as the Nationwide House prices will be released during the week. The Gfk consumer confidence survey is also expected to be released mid-way through the week. No revisions are expected for the second quarter Gross Domestic Product figures as they hit the wires on Friday. Private consumption and government spending should wrap up Britain's economic diary, with government spending still outpacing private consumption.

Housing market data will lead the pecking order in this week's US economic schedule. The Case Shiller Home Price Index for June is scheduled for today followed by the New Home sales figure for the month of July tomorrow. Last month's durable goods order are also expected for tomorrow, where a significant turnaround is currently being forecasted. Market consensus is pricing in an increase of 3.0 per cent from a negative 2.5 per cent registered in June.

The first revision of the Gross Domestic Product figures for the the second quarter is scheduled for Thursday and the numbers on personal income and personal spending in July will be released on Friday.

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.