Financial news

Trading activity for the mid-week session on Malta Stock Exchange resulted in a negative outcome as the index dropped by 0.4 per cent to close further below the 3,000 level at 2,989.3 points. In the equity market investors were active in a total of six different listings, with half of these equities closing unchanged and gains being registered in just a single company.

HSBC Bank Malta was the day's sole gainer as the equity rose by 2c or 0.8 per cent to close at €2.63. The bank was trading at an intra-day high of €2.64 when later during the session the equity dropped by one cent to end at its current price. Volumes of 1,493 shares were traded over three deals for a monetary value of €3,927.

On the contrary, FIMBank was the day's laggard as it dropped by 8c7 of a dollar or seven per cent to terminate at $1.163, which is a new low for the current year. Trading activity in the trade finance specialist resulted when an aggregate of 80,000 shares were transacted over two deals.

Bank of Valletta remained neutral during the day as it registered no gains or losses to close at €3.01. Investors in the financial services company swapped a total of 6,880 shares over four deals for a market consideration of €20,708.

Similarly, both RS2 Software and Santumas Shareholding were non-movers during the session as they closed unchanged at €0.599 and €3.04 respectively.

Go was the only equity outside of the banking sector to register a drop in price as the equity shed 6c or 3.6 per cent to end the session at €1.63.

Weekly eurozone economic review

The most salient economic indicators over the past week in the 16-country member of the euro were in general positive, as there was a significant trade surplus for July and an increase in investor sentiment in Germany. Other significant data releases during the week related to eurozone inflation figures.

Consumer prices in the eurozone increased 0.3 per cent on the month in August but still showed a mild annual deflation of 0.2 per cent. Falling energy prices were the main reason that kept annual inflation in negative territory in August, which was the third consecutive month of annual falls. Core inflation measures, which exclude food and energy, remained positive at 1.3 per cent. Meanwhile, eurozone exports continued to recover in July and drove the trade surplus higher than expected, boding well for a return to overall economic growth in the third quarter. In fact, seasonally adjusted exports grew by 4.1 per cent in July against June, the second month of consecutive gains after June's 0.9 per cent increase over May. Imports fell 0.3 per cent against June after a 0.2 per cent increase over May, pointing to continued weakness in domestic demand.

In Germany, the ZEW Index of investor and analyst sentiment increased to a reading of 57.7 for September from its prior 56.1 during the previous month, which represented a three-year high for the Index. The increase for September was nevertheless slightly weaker than expected.

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.