Financial news

Trading activity for the mid-week session on the Malta Stock Exchange extended the negative streak as the index dropped by a further 0.8 per cent to close at 3,084.23 points.

Bank of Valletta was the sole equity to boost the morale of the equity market during the day as it rose by a marginal 0c4 or 0.1 per cent to terminate at €3.399. Turnover in the Bank consisted of 6,704 shares swapped across eight deals.

The only other banking equity to be active during the session was HSBC Bank Malta, which closed in the red for a third consecutive day as its shares dropped by 3c or 1.1 per cent to close at €2.66.

GlobalCapital was the day’s laggard as the equity dropped by 50c, which equates to a drop of 33.3 per cent to close at €1.63. This decline occurred when two investors swapped a mere 950 shares.

Likewise, Malta International Airport shares were also struck by selling pressure as the equity dropped by 15c or 6.5 per cent to close at €2.15.

Go was the day’s most actively traded equity during the session as 22,370 deals were negotiated over 10 deals for a market consideration of €35,881.

Despite not being active for yesterday’s trading session, International Hotel Investments announced that it has increased its shareholding in NLI Holdings Ltd from 37.04 per cent to 50 per cent. NLI is the owning company of the property comprising the former Metropole Hotel in London.

Weekly eurozone economic review

In the eurozone, the economic calendar was relatively light, with the week’s main highlights being on the Purchasing Managers Index data for October and industrial new orders.

In the 16-country member of the euro, the PMI, that measures the economic health of the services and manufacturing sector, showed a further improvement for October as the composite index hit a reading of 53.0, which is the highest since December 2007. This positive showing was possible as the manufacturing sector moved into positive territory for the first time in 17 months. The link between survey evidence and output appears strong in the eurozone where the recession ended in the second quarter for Germany and France. Furthermore, eurozone services business rose to its highest level in 20 months for October as they leapt to a reading of 51.4. This continues to reinforce the conviction that the economy continues to expand.

Meanwhile, industrial new orders in the eurozone rose more than expected for the month of August on greater demand for intermediate goods, which continues to underline expectations that the eurozone economy will recover in the third quarter. In fact, orders in the euro area rose two per cent n August, bringing the annual decline to 23.1 per cent.

Loans to eurozone households and firms fell on an annual basis in September for the first time ever. The European Central Bank figures showed loans to the private sector contracted 0.3 per cent year-on-year in September, the first fall since data were first collected in 1991. However, on a monthly basis, private sector lending rose slightly, increasing after two months of falls.

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.