Financial news

Trading activity during the mid-week session on the Malta Stock Exchange registered further gains for the index which rose by 0.7 per cent to terminate at 3,276.63 points. In the equity market, activity was relatively muted as investors transacted an aggregate of 13 deals over four different listings.

HSBC Bank Malta was the day's sole gainer as the equity rose by 6c or 2.1 per cent to terminate at €2.90. Turnover in the bank's shares consisted of 5,236 shares swapped across two deals. Bids for 1,500 shares at €2.88 and offers of 1,000 shares at €2.95 were the best unsatisfied positions at the close of trading.

Elsewhere in the banking sector, Bank of Valletta shares closed in the red albeit registering a negligible decline in its share price of 0c1, to terminate at €3.799. Trading activity in the financial services company resulted when investors transacted 5,812 shares over six deals.

International Hotel Investments and Go were non-movers during the session as the equities closed unchanged at €0.85 and €1.685 respectively. Two investors in Go exchanged 3,475 shares, while investors in the hotel property and management company transacted 5,545 shares across four deals.

In the fixed interest sector of the market, activity was spread over seven corporate bonds and seven government stocks. In the corporate debt issues the session's worst performer was the 4.6 per cent HSBC Bank Malta 2017 which dropped by 171 ticks when €68,619 nominal was swapped over nine deals to end at €100.20.

Weekly eurozone economic review

There were no policy surprises from the European Central Bank with interest rates left on hold at one per cent following the latest council meeting. After the meeting, Bank President Jean-Claude Trichet maintained a tone of cautious optimism over the economy, repeating expectations for a very slow recovery, while drawing attention to falling money supply and private loans. Commenting on the provision of unlimited liquidity to the banking sector, the President said that "not all liquidity measures will be necessary to the same extent as in the past". This suggests that the banking sector is in a stronger position and the ECB is more comfortable letting extraordinary liquidity measures expire automatically. Meanwhile, eurozone retail sales data was weaker than expected with a further 0.7 per cent decline in September, to give a 3.6 per cent annual drop. This continued to raise doubts over the strength of an economic recovery and the outlook for consumer spending.

On a positive note, investor sentiment in the Euro-zone rose in November to its highest level in 17 months, which is the fourth consecutive monthly increase. On the contrary, the German ZEW survey on investor confidence declined to a reading of 51.8 in November, when economists polled by Bloomberg expected a drop of 55. Meanwhile, cheaper energy pulled down prices at factory gates in September. In fact, producer prices dropped 0.4 per cent, leaving them 7.7 per cent lower than a year 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.