Financial news

Trading activity for the mid-week session on the Malta Stock Exchange brought to an abrupt end this week's positivity as the Index lost a marginal 0.3 per cent to close at 3,266.92 points.

In fact, Lombard Bank Malta was the session's only positive performer as the equity rose by 15c or 5.9 per cent to terminate at €2.70.

On the contrary, Bank of Valletta closed in the red as its share price dropped by 6c5 or 1.7 per cent to close at €3.860. The bank also had the day's highest number of trades as investors transacted an aggregate of 24,118 shares across 24 deals.

HSBC Bank Malta was the sole non-mover in the banking sector as it terminated the session unchanged at €2.95.

Crimsonwing was the day's laggard as the equity dropped by 9c9 which equates to a decline of 25.5 per cent to end the session at €0.29, which is a new low for the current year.

A volume of 20,000 shares was exchanged over two deals.

Maltapost also reached new lows for 2009 as the equity shed 4c5 or 6.9 per cent to end the session at €0.605.

Medserv's shares also depreciated during the session albeit declining only by a marginal 0c1 to close at €3.998. Volume was relatively muted consisting of 750 shares swapped across one deal.

Go was also active during the session even through it registered no movement in its share price, closing unaltered at €1.65.

Weekly eurozone economic review

The economic highlights in the 16-country member of the euro over the past week focused on the unemployment rate, inflation figures and the European Commission's release of economic growth forecasts. Other salient indicators concerned money supply and economic sentiment data.

The unemployment rate in the eurozone increased further in September to 9.7 per cent, as expected by economists. There are numerous regional differences however in the rate of unemployment throughout the eurozone countries with the highest levels recorded in countries such as Spain and Ireland where the rate of people without a job has increased to 19.3 per cent and 13 per cent respectively. Consumer prices fell year-on-year for a fifth straight month in October, dropping by 0.1 per cent, after registering a 0.3 per cent decline in September. Inflation is nevertheless expected to start increasing this month as oil costs rise above year-earlier levels.

Meanwhile, annual eurozone money supply growth slowed to 1.8 per cent in September from 2.6 per cent previously, while there was a 0.3 per cent contraction in bank lending. On a positive note, the European Commission forecast that the economy of the European Union would expand next year by 0.7 per cent and 1.6 per cent in 2011 after registering a contraction of 4.1 per cent this year.

Rising optimism in industry and services boosted eurozone economic sentiment by much more than expected, jumping to a reading of 86.2 points in October from 82.8 points in September. The eurozone manufacturing sector also expanded for the first time in 17 months during October as new orders reached a level not seen over two years.

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.