Financial news

Trading activity for the mid-week session on the Malta Stock Exchange brought about a change in the direction of the Index as it gained a marginal 0.1 per cent to close at 3,135.3 points.

Bank of Valletta was the sole gainer in the banking sector during the session as its share price rose by 3c or 0.9 per cent to close at €3.36. The bank was trading at an intra-day low of €3.25, signalling a drop of 8c from its previous closing price of €3.33. However, buying activity spurred the equity to its current standing. Turnover in the bank consisted of 5,818 shares swapped across seven deals.

HSBC Bank Malta also pared losses for the day as it was trading at an intra-day low of €2.649 when buying activity pushed the price to the €2.70 level. Thus the equity registered no changes in its closing price. The financial services company was the day’s most traded equity as investors transacted 34,995 shares over 14 deals.

FIMBank was the day’s only laggard as the equity dropped by 4c of a dollar or 3.3 per cent to terminate at $1.16. The trade finance specialist was the day’s most liquid equity when 71,767 shares were swapped across six deals.

Medserv was the day’s best performer as it gained 20c5 or 5.5 per cent to terminate at €3.95. However, volume in the company was very low as 600 shares were exchanged across a single deal.

Weekly eurozone economic review

The economic data in the 16-country member of the euro over the past week was firmly focused on the unemployment rate, which increased to new highs. The week nevertheless contained more positive news particularly in the services and manufacturing sector.

Unemployment in the euro area increased to 9.6 per cent in August, its highest level in more than 10 years and much higher when compared to the 7.6 per cent recorded in August 2008. However, the headline rate distorts the regional dynamics. In fact, since the beginning of the deterioration of the labour markets in March last year, 58 per cent of the increase in unemployment has come from Spain, and Ireland has seen the numbers out of work double. Meanwhile, more positive news emanated from the services sector which returned to growth for the first time in 16 months during September as it rose to a reading of 50.9 from its prior 49.9 in August. Regional differences show that Germany and France held above 50 points while Spain and Italy held back progress in the eurozone as a whole. In manufacturing, activity contracted less sharply for September as it rose to a reading of 49.3 in September from 48.2 in August, indicating that the sector as a whole is approaching stabilisation.

Retail sales in the eurozone were also better than expected, as they dropped by 0.2 per cent in July against a predicted drop of 0.5 per cent. There was a rebound in sales in the food sector which signalled that consumer demand was benefiting from positive economic data elsewhere.

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.