Financial news

The Malta Stock Exchange index lost eight points yesterday as investors sat, mostly, on the sidelines while major banking stocks finished mixed. Only two of the four stocks to trade in the session witnessed any change in their closing prices.

Bank of Valletta plc ended the day higher, closing up 4c, or 1.2 per cent, to end at €3.30 in low volume of 1,280 shares in four deals. Shares in the other large retail bank, HSBC Bank Malta plc, meanwhile lost ground and ended the day down 5c, or 1.7 per cent, to close at €2.92, in 10 deals of 12,450 shares.

Other stocks to trade in the day were Go plc, which closed at €1.90, and International Hotel Investments plc (IHI), which finished at €0.90 in four deals of 16,341 shares. Go traded a considerable part of the day significantly lower, by as much as 5c, only to rebound in the latter part of the session. At the end of the session the best unsatisfied bid stood at €1.92 for 3,000 shares while the best unsatisfied offer stood at €2.10 for 2,090 shares. IHI, meanwhile, has witnessed robust trading in its shares of late. Last week 60,266 shares of the stock exchanged hands across 15 trades. At the end of the day the best unsatisfied bid for IHI shares stood at €0.60 for 600 shares while the best unsatisfied offer stood at €0.997 for a hefty 50,000 shares.

The week ahead - Economic indicators for week starting August 16

In the United States, after the release of the Empire State Manufacturing Index yesterday, today will be the busiest day of the week in terms of releases. The headline Producer Price Inflation (PPI) in July is expected to only have advanced marginally on a monthly basis. Core inflation will also remain very moderate. The national Purchasing Managers’ Indices (PMI) point to a steady rise in industrial production and capacity utilisation. In the housing market, housing starts and building permits are being held back by tight access to mortgage credit and paybacks associated with the April expiration of the homebuyers’ tax credit.

In the United Kingdom, inflation pressures as measured by the Consumer Price Index (CPI) and Retail Price Index (RPI) is on a downtrend, which is likely to be confirmed by July’s release. However, higher food prices and indirect taxes will slow the decline in the coming months. Growth in retail sales is expected to decline as the government’s austerity measures will put pressure on consumer confidence. In fact, July’s sales are expected to have registered an increase of 0.3 per cent last month from the 0.7 per cent in June. The figures for public finances are also expected to be released later on this week.

In the eurozone, after many data releases in the past weeks, things will be quiet in the coming days. After the confirmation of the preliminary inflation estimate for July, the ZEW Economic Sentiment Index should be interesting. Other key economic figures will be construction output for June and the 16-nation common currency area current account for 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.