Financial News

The Malta Stock Exchange continued to charge ahead yesterday as it gained another 84.933 points, or 2.3 per cent to close at 3737.986.

Middlesea Valletta plc was the heaviest traded issue on the day as 78,190 shares changed hands over 29 deals. The stock was in positive territory for most of the trading session yet closed flat at the end of the day at €0.94.

HSBC Bank Malta made further impressive gains as it closed up another 20c to close at €3.90. Bank of Valletta also managed to maintain positive momentum as it gained 3c yesterday to close just shy of €4 at €3.99, up 0.76 per cent.

FIMbank plc and Global Capital plc were also winners on the day as they closed up 4c and 3c1 respectively, to end the day at €1.16 and €1.475 per cent, respectively.

Lombard Bank Malta plc was the sole loser as it finished down 2c, or 0.63 per cent, to end the session at €3.15, down 0.63 per cent.

Other issuers which saw action on the equity market were G plc which traded 9,700 shares and closed up 3c at €2.17 and Maltapost plc where 500 shares exchanged hands without affecting the share price which closed flat at €0.72.

The week ahead - Economic indicators for week starting January 11

In the US, Consumer Price Inflation (CPI) is expected to have increased by a moderate 0.2 per cent in December after rising 0.4 per cent in November, which should reflect an easing in energy prices. Meanwhile, consensus expects that industrial production will post a 0.6 per cent gain in December from its previous 0.8 per cent increase in November.

This week will also focus on November's trade balance which is anticipated to have widened to $34.6 billion from its prior $32.9 billion. Elsewhere, retail sales for December are predicted to show a moderate increase of 0.5 per cent, which is much less than the 1.3 per cent increase registered in November.

In the eurozone, attention will be focused on the European Central Bank's monetary policy meeting on Thursday and the subsequent press conference addressed by ECB President Trichet. Interest rates are expected to remain at one per cent, while the Bank might give more information on how it will withdraw its extraordinary liquidity measures. Meanwhile, headline inflation is expected to rebound in December by rising to 0.9 per cent. This would be the highest level of inflation registered since February, which was largely due to a sharp increase in commodity price inflation.

In the United Kingdom, the week will contain few economic indicators, with the most important being the trade balance and industrial production for November. The total trade balance is expected to shrink to £3 billion from £3.2 billion the previous month. Meanwhile, industrial production is anticipated to post a monthly 0.3 per cent gain in November from its previous stagnant reading 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.