Financial news

The Malta Stock Exchange Index resumed its advance yesterday, gaining another 22 points, or 0.6 per cent, to close at the 3,515.787 level as the index continues to climb off the 2010 lows it witnessed in October.

The main advancer in the session, were the shares of HSBC Bank Malta plc, which gained 6c, or 2.1 per cent, to close at €2.970 in low volume of seven deals across 8,200 shares.

Other banking stocks to trade in the day, yet failed to register a change in their closing price were Bank of Valletta plc and FIMBank plc, which closed at €3.700 and US$0.950, respectively. BOV’s trading volume was rather robust at 32,740 shares across 25 deals, while FIMBank’s registered light volume of 5,000 shares in two deals.

Also finishing the day higher was Maltapost plc, which gained 1c on a single trade of 3,396 shares early in the session, and managed to hold on to that gain to close at €0.920.

Meanwhile shares of Go plc added 0c4, or 0.2 per cent, to close at €1.899, in a single deal of 2,000 shares.

Other shares to trade in the session, yet closed unchanged were International Hotel Investments plc, Malta International Airport plc, and Simonds Farsons Cisk plc, which closed at €0.770, €1,600 and €1,750, respectively, on relatively low volumes.

During the session, MIA issued its interim directors’ statement in which it stated that in the period following the publication of its interim results ended on June 30, 2010, no material events have taken place that would have an impact on the financial position of the company, and that during the period, the company’s financial position remained sound.

Weekly eurozone economic review

Europe’s economic growth weakened in the third quarter as government austerity measures, aimed at cutting record budget deficits, dented the recovery. Gross Domestic Product (GDP) in the 16-countries using the euro rose 0.4 per cent from the second quarter, when it then increased 1 per cent, which was its fastest increase in a period of four years. Meanwhile, industrial output dropped by a monthly 0.9 per cent in September, which was well below the 0.2 per cent gain predicted by economists in a Bloomberg survey. This was also the steepest drop in industrial production registered in a period of 18 months.

On a positive note, the eurozone had a bigger than expected trade surplus in September, as exports growth outpaced the rise in imports year-on-year. In fact, the trade surplus with the rest of the world was €2.9 billion, up from August’s deficit of €5 billion. Exports grew by 0.6 per cent month-on-month in September, while imports fell 2.5 per cent when compared to the previous month. Meanwhile, higher costs of fuel drove up eurozone inflation in October, confirming earlier estimates that price growth remained at the European Central Bank target. In fact, consumer prices in the euro-area increased by 0.4 per cent month-on-month in October for a 1.9 per cent annual gain.

In Germany, the ZEW survey on investor confidence rose for the first time in seven months in November. This confirmed that investors are optimistic on the prospects of the German economy which has outperformed that of other eurozone countries.

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.