Financial news

The Malta Stock Exchange Index shed almost 18 points, or 0.5 per cent yesterday, as equities finished mixed after a closed session on Tuesday due to a public holiday.

In the banking sector, Bank of Valletta plc shares gained 1c5 and closed at €3.20 in nine trades of 11,877 shares.

HSBC Bank Malta plc shares, meanwhile, fell 3c9, or 1.4 per cent, to close at €2.801 in 10 trades for a total of 6,450 shares.

Still in the financial services sector, shares of Middlesea Insurance plc were the day’s biggest losers, dropping 7c, or seven per cent, to close at €0.93 in light volume of 4,000 shares across two deals.

The other stock to perform poorly on the day was that of Simonds Farsons Cisk plc, which fell 1c1, or 0.6 per cent, to end the session at €1.79 in a single deal of 200 shares.

Finishing in positive territory were the shares of Malta International Airport plc, which rose 1c9, or 1.2 per cent, to close at €1.559 in two trades for a total of 6,143 shares.

Other issues to trade in the day, yet fail to register a change in their closing prices, were Crimsonwing plc, International Hotel Investments plc (IHI), and Maltapost plc, which closed at €0.42, €0.83 and €0.85, respectively. IHI witnessed relatively heavy volume of 32,466 shares across 12 deals.

Weekly eurozone economic review

In the eurozone, the construction sector contracted by 3.1 per cent in July after increasing by 1.8 per cent the previous month. On a yearly basis, output in this sector declined by 7.5 per cent after increasing 1.9 per cent in June. Meanwhile, according to data published by Eurostat, the trade gap on a seasonally adjusted basis in July was €200 million down from a deficit of €1.4 billion recorded the previous month, while economists were expected a deficit of €500 million. During July exports dropped a seasonally adjusted 0.6 per cent from June, when they increased by 5.3 per cent while imports fell 1.5 per cent. This underlined forecasts for an economic slowdown in the second half of the year.

Also on a negative note, industrial new orders in the 16-nation euro area dropped by 2.4 per cent during July, reversing the downwardly revised 2.4 per cent increase which was registered the previous month. This fall was more than twice as much as the 1.4 per cent decline which was expected, and was mainly pulled down by a fall in the demand for capital and durable consumer goods. From a year earlier, industrial new orders increased by 11.2 per cent in July from the 23 per cent increase registered in the previous month.

Finally, inflation pressures in Germany as measured by the Producer Price Index (PPI), were unchanged in August, after increasing 0.5 per  cent the previous month. This was lower than the 0.2 per cent increase which was expected by various economists.

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.