Financial news

Trading activity for the mid-week session on the Malta Stock Exchange was higher than usual as investors concluded an aggregate of 30 deals in 10 different listings. The index also closed in positive territory as it registered a marginal 0.4 per cent gain to terminate at 3135.84 points.

In the banking sector, HSBC Bank Malta and FIMBank were the only gainers as the equities rose by 0.98 per cent and 0.9 per cent to terminate the session at €2.797 and $1.12 respectively.

Bank of Valletta and Lombard Bank Malta were non-movers during the session as they closed unchanged at €3.35 and €2.50 respectively.

The day's best performer was Simonds Farsons Cisk as the equity gained four cents or 2.5 per cent to close at €1.65. Equally positive was Medserv's performance as the equity also rose by four cents, which nevertheless equates to just a one per cent increase to close at €3.99.

Go was also on the list of gainers for the day as it registered a marginal increase in its share price of 0c9 or 0.6 per cent to close at €1.609. Turnover in the quadruple play telecommunications company was spread over 3,655 shares transacted across two deals.

Maltapost shares depreciated during the session as they shed 0c9 or 1.3 per cent to terminate at €0.691. Trading activity for the postal operator resulted when investors exchanged 4,346 shares over four deals.

Outside of the banking sector, only Malta International Airport and Santumas Shareholding shares registered no movement during the day as they terminated unchanged at €2.20 and €2.50 respectively.

Weekly eurozone economic review

The economic data over the past week in the 16-country member of the euro was relatively weaker than usual. However, the week's focus was on two important indicators, the eurozone trade balance and Consumer Price Inflation.

Eurozone exports fell sharply by 5.8 per cent in August from the previous month, while imports eased by 1.3 per cent. This signalled weakness in global and internal demand which in turn continued to raise concern about the bloc's economic recovery prospects. Furthermore, the seasonally adjusted trade surplus was reduced to €1 billion in August from €6 billion in July. These trade results are discouraging even though many economists expect that the eurozone economy returned to growth in the third quarter and predict it will continue to expand slowly in the coming quarters. Ministers meeting in Luxembourg agreed that all EU members must start reducing their budget deficits which has in some cases inflated to more than four times the EU limit of three per cent Gross Domestic Product.

Meanwhile, cheaper energy and food pulled down consumer prices in the eurozone in September when compared to the same month last year.

In fact, while consumer prices remained unchanged in September from August for a 0.3 per cent year-on-year decline, core inflation, which removes volatile food and energy prices, was at an annual 1.2 per cent from 1.3 per cent a month earlier. September was the fourth straight month of falling prices, but the European Central Bank is convinced that the single currency area would not experience deflation.

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.