Financial news

Trading activity for the first day of the week on the Malta Stock Exchange started on a very positive note as the Index registered its best performance this year as it rose by three per cent to close at 3,218.60 points.

Bank of Valletta rose to the day's highest permissible level by the Malta Stock Exchange as the equity rose by 22c2 or 6.4 per cent to close at €3.671, which is the highest level the bank registered during the current year.

HSBC Bank Malta was also on the list of gainers as the equity rose to its highest levels recorded this year, registering an increase of 14c5 or 5.3 per cent to terminate at €2.894.

Lombard Bank Malta also benefited from the buying activity as its shares rose by 5c or two per cent to terminate at €2.55.

Outside of the banking sector, Malta International Airport headed the list of gainers as the equity rose by 9c9 or 4.7 per cent to close at €2.20.

Islands Hotels Group Holdings also rose during the session as it edged higher by 1c or one per cent to close at €1.01 as two investors transacted 500 shares. Meanwhile, there was no change in the share price of Go as it closed unaltered at €1.63.

Middlesea was the day's laggard as the equity shed 30c, which equates to a drop of 18.8 per cent to terminate at its lowest level for this year at €1.30. Maltapost registered a negligible 0c1 drop to close at €0.65.

Following company announcement dated October 22, Mizzi Organisation Finance announced the issue of €25 million 6.2% Bonds due on November 30, 2009. The bonds are subject to an over-allotment option not exceeding €5 million.

The week ahead - Economic indicators for week starting November 2

This week's economic focus will turn to the monetary policy authorities of the Federal Reserve, Bank of England and European Central Bank which will decide on the level of interest rates. The expectation in all three cases is for no change but the meetings will be closely monitored for hints of future rates moves.

In the US, the week will also contain some of the most important manufacturing data. Manufacturing indices have moved decisively into expansionary territory in recent months and expectations are that the ISM manufacturing index will continue to signal growth, increasing to a reading of 53 for October. The ISM Non-Manufacturing composite is also expected to rise to a reading of 51.6 during October. Meanwhile, the unemployment rate is expected to increase further by 9.9 per cent in October from its previous 9.8 per cent in September, while Non-Farm Payrolls are expected at -173,000 for October.

In the eurozone, the economic data will include the composite reading of the Purchasing Managers Index for the month of October, which is expected to remain unchanged from September at a reading of 53. The Producer Price Index is anticipated to drop to 0.4 per cent for September from its prior positive 0.4 per cent in August. On a positive note, retail sales are expected to increase to 0.2 per cent for September.

In the UK, industrial production is expected to have resumed during September as it rose by 1.2 per cent after having slumped by 2.5 per cent in August. Within that break-down, manufacturing is also assumed to have bounced back at one per cent in September from a negative 1.9 per cent a month earlier.

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.