Financial News

During the first day of the week on the Malta Stock Exchange the Index registered minor gains as it rose by 0.2 per cent to close at the 3,493.48 level. Trading activity in the equity market was spread across eight listings as investors concluded an aggregate of 22 deals.

The day’s best performer was Middlesea Insurance, as the equity gained 5c or 4.8 per cent to terminate at €1.10. Trading activity in the insurance company resulted when two investors transacted 5,319 shares for a market value of €5,850.90.

Bank of Valletta shares also ended the session in positive territory as the share price rose by 2c or 0.6 per cent to close at the €3.30 level. The bank also registered the day’s highest number of deals as investors exchanged a total of 4,840 shares across nine deals.

On the other hand, FIMBank was the only equity to close on a negative note as the dollar denominated equity dropped by 3c of an American dollar or 3.1 per cent, to terminate at its lowest level for the current year at $0.95.

Meanwhile, in the banking sector, HSBC Bank Malta was the only equity to register no changes in its share price as it closed unaltered at the psychological level of €3.00. Investors in the bank swapped 3,330 shares across four deals.

Likewise, Go, Malta International Airport, Medserv and Grand Harbour Marina shares, all ended the session without registering any changes to their respective share prices. They terminated at the €1.90, €1.62, €4.28 and the €1.96 level respectively.

The week ahead - Economic indicators for week starting August 9

In the United States, the focus next week will be August Federal Open Market Committee (FOMC) meeting. This is expected to highlight the continued poor run of economic data; rates are also expected to remain on hold. The University of Michigan Consumer Sentiment is expected to tick up after the worst monthly decline since September 2008. The headline Consumer Price Inflation (CPI) is expected to rise marginally by 0.2 per cent in July, while the core inflation should show a 0.1 per cent monthly increase. The four per cent monthly decline in the dollar index is expected to bring the trade balance to its widest since November 2008. Later on during the week, retail sales should start the third quarter of this year on a positive note.

The week ahead will be relatively light in terms of economic data in the United Kingdom with the focus being the quarterly inflation report. This will be closely scrutinised, following stronger-than-expected second quarter Gross Domestic Product (GDP) growth, still above-target inflation and Monetary Policy Committee (MPC) member Sentence’s vote for a rate hike at the last two meetings. Unemployment is likely to continue to decline, although in coming months rising public sector job losses are likely to slow the pace of improvement.

In the eurozone, ahead of the GDP data, the European Central Bank publishes its monthly bulletin, which will give a more detailed assessment of the euro-area economy following President Jean Claude Trichet’s analysis at its post-meeting press conference. On Friday, the second quarter GDP growth is expected to have accelerated, with growth being led by Germany. Other data releases the coming week for the 16-nation common currency area include industrial production figures and the zone’s trade balance, both for the month of June.

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.