Financial news

The Malta Stock Exchange Index gained 10 points, or 0.3 per cent yesterday, as trading volumes remained light. The index closed at the 3,340.730 level as 59,569 shares traded across 30 deals.

The big loser on the day were the shares of the IT services provider Crimsonwing plc, which dropped 7c, or 16.7 per cent, to close at €0.35 in a single deal of 6,800 shares.

In the banking sector, shares of HSBC Bank Malta plc gained 2c5, or 0.9 per cent, to close at €2.795 in six trades for a total of 16,000 shares. On Tuesday, HSBC shares fell by 2c8 to €2.77, on light volume, to register its lowest closing price so far this year.

Bank of Valetta plc shares, meanwhile, continued to trade in a tight trading range as they gained 1c, or 0.3 per cent, to close at €3.220 on volume of 14,035 shares across 11 deals.

Also trading and registering a change in their closing price yesterday were share of Go plc, which finished in positive territory by gaining 1c, or 0.5 per cent, to close at €1.86 in five deals for a total of 7,430 shares.

Other issues to trade during the session, yet failed to register a change in their closing prices were International Hotel Investments plc, and Middlesea Insurance plc, which ended the session at €0.80 and €1.00, respectively, on relatively light volumes.

Weekly eurozone economic review

In the eurozone, more expensive fuel increased inflation pressures, however the core inflation rate remained subdued. The Consumer Price Index (CPI) accelerated to the fastest pace in almost two years in September. Consumer prices in the 16-nation common currency area increased to 1.8 per cent from a year earlier after increasing by 1.6 per cent during the previous month. This increase was mainly led by higher energy costs. Compared to the previous month, prices increased by 0.2 per cent in September, however the core inflation rate held steady at 1.0 per cent on the previous year.

On a positive note, industrial production increased by more than expected one per cent in August, while the previous month’s increase was revised upward to register an increase of 0.1 per cent from the unchanged figure which was registered initially. The trade deficit in August widened to a more than expected €1.4 billion, much higher than the deficit of €0.2 billion which was registered during the previous month.

A separate report showed that the construction sector continued to contract for the second consecutive month in August. Construction in the euro area dropped by 0.4 per cent from July when it fell by 3.2 per cent. This slump was mainly led by declines in Germany, Netherlands and Spain. Finally, in Germany, an index measuring investor confidence compiled by the ZEW Centre for European Research dropped for a sixth month to the lowest since January 2009 to -7.2 in October, from -4.3 the previous month. However, the index measuring the current situation jumped to a three-year high level of 72.6 from 64.0 in 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.