Financial news

The Malta Stock Exchange Index lost just over eight points, or 0.2 per cent yesterday, to close at 3336.618 points in robust trading of 178,014 shares across 40 deals.

Banking shares led the way down, as stock in Lombard Bank Malta plc dropped 3c9, or 1.42 per cent, to close at €2.700 in a single deal of 625 shares, while Bank of Valletta plc shares also closed lower on the day, dropping four cents, or 1.2 per cent to end at €3,200 on moderate volume.

While HSBC Bank Malta plc shares also traded down during the session, it managed to resist closing lower and ended the session at €2.800 in six deals for a total 3,700 shares.

Also in the financial services sector, Middlesea Insurance plc, gained two cents, or 2.1 per cent, to close at €0.990 in a single deal of 500 shares.

Trading in very heavy volume were the shares of the local postal operator, Maltapost plc, where 88,726 shares exchanged hands across five deals. Yet the stock remained unchanged at the end of the session, closing at €0.900.

Malta International Airport plc stock, meanwhile, gained 1c, or 0.7 per cent, to finish at €1.530 in four trades of 24,181 shares.

Other stocks to trade in the day yet failed to realise a change in their closing prices were Plaza Centres plc, and Go plc, closing at €1.685 and €1.850 on relatively heavy volume of 30,000 and 17,300 shares respectively.

Weekly eurozone economic review

Economic growth in the eurozone, was confirmed at one per cent in the second quarter of this year, at its fastest pace in four years. On an annual basis, the Gross Domestic Product (GDP) in the 16-nation currency area increased by 1.9 per cent. However, according to these revisions, household consumption contributed less to eurozone growth than initially forecasted, which has put fresh doubts on the region’s recovery.

Also, last week, the International Monetary Fund (IMF) lowered its global growth projections for the year ahead, while according to last month’s European Commission projection, the euro area is expected to expand at a weaker pace in the second half of this year.

In the meantime, last Thursday, the European Central Bank (ECB) kept its interest rates on hold at a record low of one per cent for the 17th consecutive month as expected. The ECB also kept its economic assessment unchanged, while the bank’s president, Jean-Claude Trichet signalled concerns about current movements in exchange rates, since sudden swings in foreign exchange were harmful to growth.

Finally, in the manufacturing sector, industrial production rose more than forecasted in August as output in the 16 countries using the euro rose one per cent on the previous month. July’s industrial production was also revised upwards to show an increase of 0.1 per cent from no change. On a yearly basis, output increased by 7.9 per cent in August. Manufacturers may contract output and spending, since a stronger euro is making exports more expensive.

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.