Trading activity during the first day of the week on the Malta Stock Exchange ended on a negative note as the Index declined by 0.3 per cent to end at the 3,023.9 level. In the equity market the lion's share of the day's activity was concentrated in Bank of Valletta, which ended the session in the red suppressing the Index further. Activity was higher in the fixed interest sector of the market and was spread across 10 government stocks and five corporate bonds.

The session's worst performer was Malta International Airport, which declined by 5c or 2.3 per cent to terminate at €2.15. Activity in the airport operator was nevertheless muted as two investors swapped just a mere 700 shares.

Bank of Valletta was in relative terms the most liquid and actively traded equity given that 14 out of a total of 16 deals were transacted in the security. The price also closed lower, despite rising to an intra-day high of €3.00 when selling pressure slashed the price by 3c or one per cent to close at €2.96.

HSBC Bank Malta had no impact on the Index, as it registered no change in price, closing at €2.67. Volume in the financial services company was unusually low as 350 shares were exchanged over a single transaction.

The week ahead - Economic indicators for week starting September 14

The week ahead will contain important economic indicators on both sides of the Atlantic, with higher employment figures in the UK and inflationary figures in the US.

In the US, advanced retail sales should be strong but core spending, excluding gasoline and autos, is likely to be weak at 0.1 per cent. Both Consumer Price Inflation and Producer Price Inflation's headline series can be expected to pick up on a yearly basis in August, increasing to a negative 1.7 per cent and a negative 5.3 per cent respectively. Meanwhile, industrial production is expected to edge up to 0.6 per cent in August. The regional Purchasing Managers' Indices, Empire State and Philly Fed will provide a good early indicator for the level of manufacturing strength in September.

In the eurozone, the key data release for the week ahead will be the ZEW investor confidence survey for September which is likely to show further advances as sings of recovery boost investor sentiment. According to Bloomberg estimates eurozone inflation is expected to increase to 0.3 per cent from a prior negative 0.7 per cent, on weaker demand and lower energy prices.

In the UK, the coming week will be relatively busy, starting with inflation figures for August, which are expected to ease further to 1.6 per cent year-on-year from its prior 1.8 per cent. Inflation has been sticky in the UK on the back of the weakness of the sterling, which made imports more expensive. Meanwhile, unemployment should show a continuous rise in the jobless rate to 8.0 per cent in the three months to July from 7.8 per cent prior. UK retail sales in August are likely to have declined by 0.2 per cent on the month, as the rise in the jobless rate and the end of sales season see sales fall 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.