Financial news

Trading activity for the mid-week session on the Malta Stock Exchange extended yesterday's gains as the index registered a modest 0.2 per cent increase to terminate slightly above the 3,300 level.

HSBC Bank Malta pared gains for the third consecutive day to close the session unchanged at €2.98. The bank was trading at an intra-day high of €2.995 when some selling activity pushed the price back to its present position. Turnover in the bank consisted of 22,509 shares transacted across 14 deals.

Bank of Valletta shares also registered no change in price during the session closing unchanged at €3.84. However, the price dipped to an intra-day low of €3.839 when buying activity moved the price back to €3.84.

Outside of the banking sector, Malta International Airport headed the list of gainers during the day as the equity rose by 10.4c or 4.6 per cent to close at €2.354.

Likewise, Go shares also ended on a positive note albeit increasing by 1c or 0.6 per cent to close at €1.79. This was the third consecutive rise in price that the company registered during this week.

GlobalCapital registered no variation in the share price as it closed unchanged at €1.

Despite not being active during the session, Grand Harbour Marina published its Directors' Interim Statement. In the third quarter of 2009 the company saw a continuation of a high level of occupancy throughout the marina, as pontoons remain full and super-yacht berthing for the summer equated to 104 yachts, which compares favourably to 96 for the summer 2008.

Weekly eurozone economic review

The eurozone emerged from the recession in the third quarter as the Gross Domestic Product (GDP) expanded by 0.4 per cent in the three months to September, marking an end to the worst recession since the World War II.

Germany and France which shook off the recession in the second quarter, posted third quarter growth rates of 0.7 per cent and 0.3 per cent respectively. Spain, however, continued to struggle as its GDP dropped by 0.3 per cent in the three months to September.

Meanwhile, eurozone industrial production rose by 0.3 per cent month-on-month for a fifth time in a row. This was nevertheless below the 0.5 per cent increase expected by economists in a Bloomberg survey.

The seasonally unadjusted external trade surplus in the 16 countries using the euro was €3.7 billion in September against market expectations of a €2 billion deficit in a Reuters poll. This increase was largely due to a recovery in exports. In fact, exports jumped by 5.5 per cent month-on-month while imports rose only 1.1 per cent. The trade surplus in September came despite the euro then hitting a 12-month high against the US dollar.

Meanwhile, cheaper food and fuel pulled down the euro consumer prices index in October for a fifth month running in annual terms. Prices in the eurozone rose 0.2 per cent last month compared with September but dipped 0.1 per cent year-on-year. In its November monthly report, the European Central Bank noted that latest indicators reinforce the view that the significant contraction in the global economic activity has come to an end and that the world economy has started growing again.

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.