Financial news

Trading activity for the first session of the week on the Malta Stock Exchange resulted in a positive outcome for the Index which rose by 0.9 per cent to terminate at 3141.41 points. In the equity market, investors transacted an aggregate of 22 deals struck across five different companies.

FIMBank headed the list of gainers as the equity rose by 4c of a dollar or 3.6 per cent to close at $1.14. Turnover in the dollar denominated equity consisted of 5,792 shares swapped across two deals.

Bank of Valletta was also a gainer for the session as it managed to break last week's stalemate when it edged up by 1c5 or 0.5 per cent to end at €3.365. The bank was trading at an intra-day high of €3.37 when selling pressure pushed the price slightly lower to its current standing. The financial services company was also the day's most actively traded equity as investors transacted 7,553 shares in nine deals.

In the banking sector, only HSBC Bank Malta shares registered a decline in price albeit dropping by just a mere 0c1 or 0.04 per cent to end the session at €2.749.

International Hotel Investments was also a positive performer during the session as the equity registered a 2c9 gain which equates to 3.5 per cent to close at €0.85. Turnover in the hotel property and management company was relatively subdued as two investors swapped 500 shares.

Go was the day's only non-mover as the equity closed unchanged at €1.62.

The week ahead - Economic indicators for week starting October 26

The economic indicators for the week ahead will feature the unemployment figures for the eurozone and US third quarter gross domestic product estimates.

In the US, consumer confidence in October is expected to see some small improvements, with an anticipated reading of 53.5 from its prior 53.1 in September. Meanwhile, headline durable goods orders are expected to rise one per cent in September after a broad-based decline in August that was led by a drop in aircraft orders. On a positive note, real Gross Domestic Product is forecast to increase by an estimated 3.2 per cent in the third quarter of 2009. In the third quarter, consumption will contribute the most to growth as it is forecast to rise by 3.3 per cent. Meanwhile, Personal Consumption is forecast to fall by 0.5 per cent in September, which would be an abrupt decline following an impressive jump in August.

In the eurozone, business confidence measures are expected to register some smart increases, particularly in services and industry.

The increase in consumer confidence is expected to be smaller given the weakness in labour-market conditions, which are nevertheless deteriorating less rapidly.

However, on Friday, the unemployment rate is expected to edge up to 9.7 per cent for September from its previous 9.6 per cent. The Harmonised Index of Consumer Prices is expected to drop to -0.2 per cent for October from -0.3 per cent a month earlier.

In the UK, Nationwide House Prices are expected to increase by a monthly 0.6 per cent in October, slightly less than the 0.9 per cent increase registered for the previous month. Meanwhile, the GfK Consumer Confidence survey is also anticipated to register a modest improvement for the current 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.