Financial news

The Malta Stock Exchange Index lost three points, or 0.1 per cent yesterday, as equity trading was light with 20,440 shares exchanging hands across 10 deals in just four equities. Only two of the four equities to trade managed to register a change in their closing price.

Bank of Valletta plc shares fell marginally, losing 0c1, or less than 0.1 per cent, in four deals for a total of 1,741 shares and closed at €3.699.

Middlesea Insurance plc, meanwhile, also closed lower, dropping 0c3, or 0.3 per cent, to end the session at €1.047 in a single deal of 3,000 shares.

Other shares to trade in the session, yet failed to see a change in their closing prices were HSBC Bank Malta plc and RS2 Software plc, which closed at €2.890 and €0.500 respectively.

Trading in the corporate bond market was active as €395,877 nominal across 61 deals took place. Trading finished mostly higher as nine of the sixteen bonds to trade in the session finished higher while two closed lower. The bond to suffer a biggest loss on the day was the 6.25% Tumas Investments 2014-2016 issue, which fell €1.45, or 1.4 per cent, to close at €103.00 in two trades for a total of €3,600 nominal. The bond making the biggest advance was the 7.00% MIDI 2016-2018 sterling denominated issue, which added £1.00, or 1.0 per cent, to close at £106.00 on volume of £72,600 nominal across four deals.

Weekly eurozone economic review

In its twice-yearly economic forecasts, the European Commission expects that economic growth in the 16-country members of the euro would slow to 1.5 per cent in 2011 from 1.7 per cent this year, but would rebound to 1.8 per cent in 2012. Moreover, it is expected that the main engine of growth in the region will be Germany, while Portugal might fall back to recession next year. In a separate report, industrial orders in the euro-area dropped the most in almost two years in September, when they declined by 3.8 per cent, which is well below the 5.1 per cent gain registered a month earlier.

Eurozone consumer prices held steady in November with an annual increase of 1.9 per cent, while the unemployment rate rose to its highest level in more than 12 years. In fact, the jobless rate rose to 10.1 per cent last month, up from a downwardly revised rate of 10.0 per cent the previous month. The increase reflects the fact that European companies are reluctant to add workers as rising energy costs threaten to curb profit margins. Meanwhile, economic sentiment improved more than expected in November, led by more optimism among consumers, as well as in the services sector and in industry. In fact, consumer optimism increased to a reading of -9.4 last month, from -10.9 in October, rising above the long term average of -12.5.

On a positive note, the eurozone’s manufacturing sector expanded at its fastest pace in four months in November. In fact, the Purchasing Managers’ Index (PMI) for the manufacturing sector rose to 55.3 last month, which was above the 54.6 reading registered in October.

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.