Financial news

The Malta Stock Exchange closed seven points, or 0.2 per cent, higher yesterday, to finish at the 3,368.082 level as investors in the equity market stayed mainly on the sidelines. Trading volume was thin as 20,638 shares were executed across 23 deals in five equities.

The big mover on the day were the shares of Bank of Valletta plc, which gained 2c, or 0.6 per cent, to end the day at €3.300 in ten deals for a total of 6,750 shares. The bank will release its financial statements for the year ended September 30, 2010 tomorrow.

The other equity to make significant gains on the day was the stock of Malta International Airport plc, which added 1c, or 0.6 per cent, to end the session at €1.660 in three trades for a total of 1,000 shares.

Also finishing on the upside were shares of HSBC Bank Malta plc, which added marginally to its share price by climbing 0c5, or 0.2 per cent, to end the day at €2.800 on volume of 5,350 shares across four deals.

Finishing in negative territory was Go plc, whose shares dropped marginally by 0c1 in three deals for a total 3,600 shares, and closed at €1.869.

Maltapost plc, whose shares were trading in positive territory for most of yesterday’s session, settled back down late in the session to close unchanged at €0.92 in three deals of 3,938 shares.

Weekly eurozone economic review

In the eurozone, the flash Purchasing Managers Composite Index (PMI) continues to add to the evidence that the recovery in the region is faltering. The data shows that the services and manufacturing industries expanded at the weakest pace in October as a surprise upswing in Germany was offset by slowing growth in France. On a positive note, the index for the manufacturing sector increased to a reading of 54.1 from the level of 53.7 which was registered during the previous month. On the other hand, the index related to the services sector dropped to a worse-than-expected reading of 53.2 in October, down from 54.1 the previous month.

Meanwhile, also in the manufacturing sector, industrial orders increased more than twice as forecasted. Orders in the 16-nation euro area increased 5.3 per cent in August after declining by 1.8 per cent the previous month. On a year-on-year basis, industrial orders increased by 24.4 per cent in August after rising by 11.7 per cent in July.

Data from Europe’s largest economy, Germany, continues to suggest that the country’s slowdown in growth may not fall as much as some economists forecast. In fact, a German business confidence index unexpectedly rose to the highest level registered since May 2007, to a reading of 107.6 in October from 106.8 in the previous month. Finally, according to the European Central Bank, the rate of growth in the money supply on a yearly basis, held steady at 1.0 per cent in September from 1.1 per cent the previous month.

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.