Financial news
MSE daily report
Trading activity for the mid-week session on the Malta Stock Exchange resulted in a negative outcome as the index dropped by one per cent to terminate at 3,150.69 points. In the equity market investors transacted an aggregate of 23 deals in four different listings.
Bank of Valletta was the sole loser during the session as the equity declined from the €3.40 level registered during Tuesday's session as selling pressure pushed the price down by 21c or 6.2 per cent to terminate at €3.19. The financial services company also had the highest number of deals during the session as investors swapped a total of 21,624 shares over 12 deals.
On the contrary, HSBC Bank Malta was for the second consecutive day the only gainer in the banking sector as its shares rose by 2c2 or 0.8 per cent to close at €2.80. Turnover in the bank consisted of 14,363 shares exchanged over eight deals.
Only Lombard Bank Malta was a non-mover as the equity terminated the session unchanged at €2.50. Activity in the bank's shares resulted when two investors transacted 3,600 shares.
Go was the only non-banking equity to be active during the day's session. The quadruple play communications' company was also on the list of gainers, as the equity rose by 1c or 0.7 per cent to close at €1.56. Investors in the company swapped 3,048 shares across two deals.
Weekly eurozone economic review
The economic headlines for the eurozone over the past week were largely focused on the monthly gathering of the European Central Bank's (ECB) governing council. Other salient indicators for the week included the final reading of the eurozone's second quarter Gross Domestic product results and the industrial production figures.
The ECB has cautioned against a speedy economic recovery after leaving benchmark interest rates at a record low one per cent last Thursday for the fifth month in a row. ECB President Jean Claude Trichet has reiterated that "current rates remain appropriate" while he emphasised the need for governments to rein in ballooning budget deficits. Meanwhile, the eurozone's economy shrank more than previously thought in the second quarter of 2009 because contributions from household demand and trade turned out to be smaller than initially estimated. In fact, the Gross Domestic Product in the 16-country member of the euro shrank by 0.2 per cent in the April-June period quarter-on-quarter and by 4.8 per cent on annual terms. Elsewhere, German analyst and investor sentiment surprised by falling for the first time in three months in October, hitting its lowest level since July. The Mannheim-based ZEW economic think tank said its monthly poll of economic sentiment fell to a reading of 56 from its previous 57.7 in September.
Eurozone industrial production output rose to 0.9 per cent in August following an upwardly revised monthly increase of 0.2 per cent in July. This leaves production at 15.4 per cent below the year-earlier level.
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.