Financial news

Trading activity for the mid-week session on the Malta Stock Exchange resulted in a positive outing as the Index gained a marginal 0.3 per cent to terminate at the 3,086.3 level.

Selling pressure continued to suppress the value of HSBC Bank Malta shares, which declined by 5c or 1.9 per cent to terminate at €2.65. The bank was also the session's most actively traded equity as investors transacted a total of 9,355 shares over 12 deals for a market consideration of €25,006.

Bank of Valletta also ended the day in the red albeit registering a negligible one-tenth of a cent decline which sufficed to remove the price from its prior €3 level down to its present standing at €2.999. Activity in the bank's shares resulted when investors swapped 2,200 shares over two deals.

Go was also on the laggard's list as it shed 1c or 0.6 per cent on low volume of 680 shares exchanged over two deals. The price of the equity terminated at the €1.79 level.

International Hotel Investments headed the list of gainers as the equity rose by 3c9, which equates to a 4.6 per cent gain and a closing price of €0.88. The equity's activity was nevertheless muted as investors swapped 500 shares over a single deal.

Maltapost was the session's most liquid equity as 19,500 shares were exchanged over four deals. The local postal operator was also a gainer as it rose by 1c or 1.45 per cent to close at €0.70.

Likewise, FIMBank shares also gained on the day's trading activity, yet by just a mere 0c1 of a dollar to close at $1.29.

Weekly eurozone economic review

The economic highlights over the past week in the 16-country member of the euro-area, were the growing unemployment rate, consumer price inflation and the Gross Domestic Product. The week also contained economic data related to sentiment indicators.

Eurozone's unemployment rose to 9.5 per cent during August, hitting a 10-year high. The July unemployment level compared with June's 9.4 per cent was in line with market consensus. The rise in joblessness was highest in Ireland and Spain, where the global credit crunch battered the construction sector. Meanwhile, on a positive note, manufacturing activity in the eurozone shrank less than expected as it rose to a reading of 48.2 during August from its prior reading of 47.9 in July, still below the 50 level that signals expansion. However, the manufacturing sector is still seen as approaching stabilisation after having contracted for 15 consecutive months. In fact, the upbeat mood was also reflected in the eurozone's economic sentiment, which increased more than expected in August as it rose to 80.6 points from July's 76 points. The eurozone's economy was confirmed to have contracted marginally in the second quarter as the Gross Domestic Product of the 16 countries using the euro fell by 0.1 per cent after a 2.5 per cent drop in the first three months of 2009.

Eurozone consumer prices declined for the third month running in August, falling by 0.2 per cent after a steeper 0.7 per cent drop in July. This data comes before the European Central Bank's interest rate setting meeting today, at which markets expect the bank to leave its main refinancing rate unchanged.

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.