Financial news

Trading activity for the first day of the week on the Malta Stock Exchange ended on a negative note as the index dropped by 0.4 per cent to terminate at 3,042.9 points. There was only a single equity which ended in positive territory, with the other three trading equities moving in opposite direction.

HSBC Bank Malta was the only equity to register an increase during the day as it gained 4c9 or 1.9 per cent to end at €2.699. The Bank struck also the highest number of deals, which were nine in total as investors swapped 5,850 shares.

In the banking sector, Bank of Valletta shares registered various changes during the session as the equity started with a loss of one cent, rose to the €3.00 level, and finally dropped by 3c to close at €2.97. Activity in the financial services company resulted when investors transacted 5,105 shares across six deals for a market consideration of €15,263.

GO was the day's laggard as the equity dropped by 9c, which equates to a five-per cent decline to terminate at €1.70. The quadruple play communications' company succumbed to selling pressure as investors had started placing bids at a much lower level than the market price, following the publication of the company's interim results at the start of the week.

A single deal of 1,260 struck in International Hotel Investment shares, was enough to suppress the price by 2c or 2.4 per cent to end the session at the €0.80 level.

The week ahead - Economic indicators for week started September 7

Attention this week will be focused on the Bank of England's interest rate meeting on Thursday as well as on the Federal Reserve's economic forecasts.

In the United States, the first important economic indicator comes tomorrow when the Federal Reserve will release its Beige Book, which is a report that contains its economic forecasts and is published every six weeks. Thursday's data will include trade balance figures for July, with consensus expecting that this would remain unchanged from its prior negative $27 billion. The most likely market mover next week might be the University of Michigan's consumer sentiment indicator, with preliminary figures slated for release on Friday. Here consensus is anticipating an increase in sentiment for September, which is expected to rise to a reading of 67 from its prior 65.7 last month.

In the United Kingdom, the week's highlight will be the Bank of England's meeting on Thursday, whereby the Bank is expected to keep interest rates unchanged at 0.5 per cent, and introduce no changes to its' current £175 billion Asset Purchasing Scheme. Meanwhile, UK industrial production is expected to increase by 0.2 per cent in July, which is less than the 0.5 per cent gain registered during the previous month.

In the 16-country member of the euro, the flow of economic data will decrease significantly in the days ahead.

However, the week will shed some light on the pace of industrial recovery at the beginning of the third quarter. Analysts are expecting an increase in industrial production boosted largely by an upward trend in orders in Germany, France and Italy.

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.