Financial news

The Malta Stock Exchange Index finished marginally lower yesterday as investors showed more interest in corporate and government bonds than equities. The index closed at the 3,347.436 level on light trading volume of 28,601 shares across 26 deals.

Leading the slide lower where shares in Lombard Bank Malta plc, which closed five cents, or 1.9 per cent lower, to close at €2.650 in a single trade of 2,000 shares.

Also in the banking sector, both HSBC Bank Malta plc and Bank of Valletta plc shares closed unchanged at €2.798 and €3.240 respectively, both on light volumes.

Finishing up at the end of the session were shares of Grand Harbour Marina plc, which rose two cents, or one per cent, and ended at €1.980 in a single trade of €1,000 shares.

Also closing in positive territory was the stock of Go plc, which added 1c to its closing price on trading volume of 6,000 shares across three deals, to end at €1.850.

Rounding out the trading day were shares of the local postal operator, MaltaPost plc, which closed unchanged at €0.90 in a single deal of 2,035 shares. At the end of the session the best unsatisfied bid stood at €0.90 for 4,508 shares, while unsatisfied supply was non existent.

Trading in the corporate bond market was moderately light as €183,400 nominal across 25 deals was traded. Results were generally positive as six of the 15 bonds to trade in the session finished higher while four ended lower.

The week ahead - Economic indicators for week starting October 18

In the United States, in the coming week, industrial production figures and capacity utilisation data are expected to show that the initial lift from the inventory restocking has now faded. The weakness in these figures reflects poor underlying economic conditions. Meanwhile, data from the housing sector has showed that activity has failed to recover following the expiration of the housebuyers’ tax credit. In fact the Housing Market Index as compiled by the National Association of Home Builders is expected to increase to 14 from 13. Other economic indicators in the housing market include building permits and housing starts, both for the month of September.

In the eurozone, this week features numerous important economic data releases. The German IFO index is expected to have peaked in September and to weaken this month on global trade concerns and uncertainty about the domestic economy, with the current conditions component edging higher but expectations weakening. However, the headline index is expected to remain high in historic terms. The German ZEW index should also remain in free-fall.

Furthermore, the preliminary results of the Purchasing Managers’ Index for Germany, France and the euro area as a whole are also expected to be released in the middle of this week. Other economic indicators in the euro area include construction output and current account balances, both for the month of August.

In the United Kingdom, the Bank of England’s minutes of the October 7 meeting is expected to show continued support for rate hikes from one member. However, there may also have been dissent in other direction, with another member voting to extend quantitative easing. Retail sales are expected to have rebounded in September, after contraction for the first time since January, in August. However, survey data indicate a sharp slowdown in spending which is likely to be present in the official data in the coming months. Finally, this week also features, the Public Sector Net Borrowing for the month of September.

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.