Financial news

The Malta Stock Exchange Index closed practically unchanged yesterday as only two of the six equities to trade in the session managed to witness a change in their closing prices, while the changes made were marginal.

Trading in shares of the banking sector was relatively uneventful even though trading volumes were relatively active. Bank of Valletta plc shares were up a mere 0c5, or 0.2 per cent, to close at €3.275 in nine trades for a total 18,663 shares. HSBC Bank Malta plc shares closed unchanged, at €2.800, on volume of 21,000 shares in six trades while FIMBank plc shares also closed unchanged, ending the session at US$0.950, in two trades for a total of 19,360 shares.

The only other stock to trade and make advances in the session was that of Malta International Airport plc, which gained 0c9, or 0.6 per cent, to close at €1.529 on volume of 9,458 shares across four trades.

Other shares to trade yesterday were those of Grand Harbour Marina plc and Maltapost plc, both of which closed unchanged at €1.960 and €0.900, respectively, on light volume.

Trading in the corporate bond market remained week as €73,768 nominal across 13 deals were traded. Bond prices finished mostly lower as three of the nine bonds to trade in the day ended considerably lower while only two closed higher, yet marginally. The big mover on the day was the 5.35% Izola Bank 2015 issue, which lost €1.00, or 1.0 per cent, to close at €100.49 on volume of €20,000 nominal across two trades.

Weekly eurozone economic review

In the eurozone, the rise in the number of people unemployed in Spain and France was offset by falls in Germany and Italy. As a result, the unemployment rate for the 16-nation common currency area remained unchanged at a 12-year high of 10.1 per cent of the workforce in August against an upwardly revised reading for July.

Meanwhile, inflation pressures increased slightly year-on-year to 1.8 per cent in September as expected. This was higher than the 1.6 per cent in August but remained below the European Central Bank’s target of below, but close to two per cent.

On a negative note, retail sales in the euro area fell 0.4 per cent month-on-month in August, after increasing by 0.1 per cent the previous month. This has defined expectations of a rise of 0.2 per cent.

Meanwhile, the Purchasing Managers’ Index for the manufacturing sector for September was upwardly revised to a reading of 53.7 from the previous estimate of 53.6, while the index for the services sector was also upwardly revised from an earlier reading of 53.6 to 54.1.

On the sovereign front, Ireland has said last week that it was pumping billions more euros into its banking system. Meanwhile, Moody’s rating agency followed similar moves by Standard and Poor and Fitch by cutting Spain’s top-notch triple-A rating to AA1, due to its budget impact on economic growth.

Finally, an index of executive and consumer sentiment in the euro area nations rose to a reading of 103.2, the highest since January 2008, from an upwardly revised reading of 102.3.

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.