Financial news

Trading activity during the first day of the week on the Malta Stock Exchange resulted in a positive outcome of the Index which edged up by 0.3 per cent to end the session at 3,094.36 points. In the equity market, activity was muted as 11 deals were struck over four different listings.

Bank of Valletta managed to rise above the important psychological level of €3.00 when it registered a 4c increase on buying activity, which equates to a 1.3 per cent gain to terminate at €3.04. The last time when the Bank edged beyond this level was on October 17, 2009.

A positive outcome was also registered in HSBC Bank Malta shares, as the equity rose by 2c5 or 0.9 per cent to end at €2.70.

Go was also a gainer during the session albeit edging up by just a mere one-tenth of a cent to terminate at €1.80. Investors in the quadruple play communications' company struck an aggregate of two deals on very low volumes.

Low volumes were also registered in Malta International Airport as 615 shares were exchanged over two deals. However, unlike other equities, MIA shares did not post in a positive performance as the listing shed 15c or 6.4 per cent to close at €2.20.

Despite not being active for the day's trading session, Grand Harbour Marina published its half-yearly financial statement for the period from January 1 to June 30,2009. The company reported a pre-tax loss of €258,719, more than last year's loss of €162,510, due to a decrease in revenue and an increase in costs.

The week ahead - Economic Indicators for week starting August 31

In the coming week, the spotlight will be focused on the US labour market, and on the ECB interest rate meeting on Thursday.

In the US, this week will bring two very important economic indicators, the Institute for Supply Management Index on manufacturing and the labour market report. The consensus expectation for the ISM Index is an increase to just over 50 points, which would result in an expansion in the manufacturing sector for the first time since January 2008. Meanwhile, following July's surprise decline in the number of jobs, market consensus is anticipating that the jobless rate will increase to 9.5 per cent in August.

The week's data will also feature the minutes of the Federal Open Market Committee (FOMC) interest rate meeting, pending home sales and the ISM Index for the services sector, which is expected to remain just below the 50 level at 48.

On the other side of the pond, the week's highlight will be the European Central Bank's interest rate meeting, which might send signals on the future monetary policy course after the summer months.

Meanwhile, the eurozone's Gross Domestic Product projections for the second quarter are expected to register an annual decline of -4.7 per cent from a prior negative figure of 4.6 per cent.

On a positive note, the composite Purchasing Managers' Index is expected to enter into expansionary territory to a reading of 50.

In the United Kingdom, the services sector Purchasing Managers' Index is projected to continue registering expansion from its July reading of 53.2 to a reading of 54 in August.

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.