Financial news

Trading activity for the first day of the week on the Malta Stock Exchange started on a negative note as the Index dropped by 0.6 per cent to terminate at 3,294.8 points.

In the banking sector, Lombard Bank Malta was the only gainer as the equity rose by 5c, which equates to an increase of 1.8 per cent to terminate at €2.80.

On the contrary, HSBC Bank Malta closed the day in the red as the equity shed 1c or 0.3 per cent to close at €2.98. Investors transacted the highest number of trades in the bank when 13,358 shares were exchanged over 16 deals.

Bank of Valletta and FIMBank were non-movers during the session as they closed unchanged at €3.80 and $1.145 respectively. FIMBank announced that on November 13 a Shareholders' Agreement and Subscription Agreement was entered into between three companies to pave the way for the creation of CIS, as a joint venture vehicle to carry out the activities of factoring in Russia.

Outside of the banking sector, the day's laggard was International Hotel Investments as the equity declined by 3c or 3.5 per cent to terminate at €0.82. The company also published its interim directors' statement, where it stated that the current global recession has continued to affect the international hospitality industry and the group's operations are registering lower returns to different degrees than those achieved in 2008. On the other hand, there are indications that in 2010 the international hospitality industry will start a slow recovery.

Middlesea Insurance fell to new all-time low yesterday as the equity dropped by a further 1c or 0.8 per cent to close at €1.24. A low volume of 913 shares were transacted over two deals.

The week ahead - The week ahead

In the week ahead, economic indicators in all the reported major economies are expected to show further positive signs of recovery.

In the United States, retail sales are expected to rebound by 0.9 per cent in October, following a 1.5 per cent decline the previous month. Once again, most of the growth in sales is expected to be accounted for by a surge in the purchase of vehicles.

Meanwhile, consensus expects producer prices to surge by 0.5 per cent in October when in September producer prices were down 0.6 per cent. Industrial production is also anticipated to post another solid gain in October, rising by 0.4 per cent after a 0.7 per cent increase in September. Also, headline Consumer Price Inflation is expected to increase by 0.2 per cent in October reflecting a 1.2 per cent rise in energy costs and 0.1 per cent gains in core and food prices. In the housing market, housing starts are forecast to increase by 1.7 per cent in October to 600K. This would mark the highest level in 11 months.

In the United Kingdom, Consumer Price Inflation is predicted to have accelerated in October, jumping by 0.1 percentage points to 1.4 per cent year-on-year. The increase is likely to be driven largely by base effects related to transport prices. Meanwhile, retail sales are also expected to register a strong rebound in October, with consensus anticipating an increase of 0.5 per cent. During the week, the Bank of England will publish the minutes of its latest monetary policy meeting held on Thursday, November 5.

In the eurozone, the week's economic news will be lighter than in the other economies and largely focused on consumer prices which are expected to rise by 0.3 per cent in October.

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.