Financial news

The Malta Stock Exchange opened its trading week on a positive note as the local index gained 1.7 per cent to close at 3,059 points. The star performer of the session was once again Bank of Valletta, as gains in the banking equity heaved the Index higher.

BOV shares registered a gain of 3.6 per cent as the bank approaches its financial year end. The banking equity gained 11c on the highest number of deals and largest volumes as 30,782 shares were exchanged over 15 transactions. The equity closed at €3.20, the highest closing for this year. HSBC Bank Malta was the other banking equity on Monday's gainers' list as the largest equity by market capitalisation on the local exchange rose by 1.52 per cent or the equivalent of 4c. Nine different transactions with an aggregate of slightly less than 9,000 shares pushed the price to a two-week high of €2.67.

The same amount of deals was also registered in Go but coupled with more voluminous trading as an aggregate of 14,720 shares were transacted. The telecommunications company registered a rather volatile session as the equity opened the session at €1.53, 5c below its previous closing, subsequent selling activity saw the equity depressed at an intra-day low of €1.50. Some late buying activity pushed the price back to €1.58 for an unaltered closing price.

Low trading activity was registered in the other three equities trading during yesterday's session as none of the equities registered more than 1,000 shares in volume. The lowest level of the pack was struck in International Hotel Investments as 165 shares were transacted over a single deal. However, this sole transaction pushed the price higher by 2.5 per cent to close at €0.82.

Trading activity in Malta International Airport shares was limited to 900 shares spread over two deals. No intraday movements were registered as the equity closed unchanged at €2.23. Another unaltered closing was registered in Medserv's shares as the oil servicing company closed at € 3.745.

The week ahead - Economic indicators for week starting September 28

Employment figures will attract most of the attention on both sides of the Atlantic during this week as the unemployment rate in both the United States and the eurozone moves closer to the 10 per cent level.

The unemployment figure for the euro area is scheduled to be released on Thursday as market participants are expecting the rate to hit 9.6 per cent for the month of August. A bout of confidence figures are lined up earlier on during the week as consumer, economic, industrial, services confidence figures should keep on riding the wave of optimism.

The economic schedule in the United Kingdom will be relatively thin, with revised Gross Domestic Product figures hitting the wires today. An improved year on year figure is expected at -5.4 per cent from a negative 5.5 per cent. Some housing data will also feature during the week as mortgage approvals for the month of August are expected at 51,500 up from 50,100.

Economic releases will flow throughout the whole week in the US with employment figures stealing most of the limelight. The first two of the week's four key employment readings are due tomorrow morning. Payroll-services firm ADP is expected to report that employers in the private sector cut 200,000 jobs from their payrolls in August after cutting 298,000 in July. The September jobs report from the Labour Department is due on Friday, an hour before the start of trading. Employers are expected to have cut 180,000 jobs from their payrolls after cutting 216,000 in the previous month. The unemployment rate, generated by a separate survey, is expected to have risen to 9.8 per cent from 9.7 per cent in the previous month.

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.