Financial news

The Malta Stock Exchange index lost more than 35 points, or 0.9 per cent yesterday, to close at 3,821.300 as trading volume was moderate at 94,423 shares across 55 trades. Shares in larger retail banks led the charge downwards as the rest of the market finished mixed.

Bank of Valletta plc shares, which witnessed the bulk of the day’s trading, fell 2c9, or one per cent, to close at €3.020 in robust volume of 61,775 shares across 29 trades.

HSBC Bank Malta plc shares also closed lower, shedding 6c9, or two per cent, to end the session at €3.401 in five deals for a total of 6,458 shares.

Lombard Bank plc stock, meanwhile, bucked the downward trend and closed marginally higher, gaining 1c, or 0.3 per cent, to end at €3.010 in four deals for a total of 4,778 shares.

Shares in the Floriana-based insurer, Middlesea Insurance plc, gained three cents, or 2.9 per cent, to finish at €1.070. Trading was very light as just two deals for a total of 240 shares were executed.

Finishing in negative territory were the shares of Go plc and Malta International Airport plc, which closed 2c9, and four cents lower, respectively, to close at €1.870 and €1.810, respectively. Volume in Go shares was light as a single deal of 650 shares took place, while trading in MIA registered at 12,600 shares across six deals.

Other stocks to witness trading in yesterday’s session, yet failed to see any change in their market value, include those of Plaza Centres plc, Maltapost plc, and Midi plc, which closed at €1.670, €1.070 and €0.450 respectively.

The week ahead - Economic indicators for week starting February 14

In the United States, a number of indicators are on the agenda this week. The first highlight will be the retail sales figures for the first month of this year which are expected to be released today. Furthermore, also today, the first regional sentiment indicator, the Empire State Manufacturing Index will also be released. The minutes of the Federal Reserve’s last interest rate meeting will also draw attention of market participants. These are expected to show how the committee members assess the most recent improvements in the labour market and whether they are already considering an extension of the government bond repurchasing programme at the end of June.

Other interesting data this week, features the inflation rate and industrial production figures, both for the month of January.

In the eurozone, the Gross Domestic Product figure for the fourth quarter of 2010 will be released today. This is expected to show that countries like Germany, Austria, Finland and The Netherlands will likely post robust growth compared to the previous quarter. However, Ireland, Portugal and Greece are expected to show significant declines.

Results, for sentiment indicators are scheduled to be released, this week, where both the German ZEW index and eurozone consumer confidence are expected to show and increase. Other economic indicators include the current account deficit for the region and construction output for December.

In the United Kingdom, the release of the inflation rate today is expected to show that consumer prices have risen to an annual pace of four per cent in January from 3.7 per cent in December. The publication of the inflation report tomorrow will also be of interest as it is expected to deliver insight into the Bank of England’s decision to leave interest rates unchanged last week.

Other key economic indicators expected to be released this week include the unemployment rate by the International Labour Organisation for the three months to December and retail sales figures for January.

This article has been prepared by Bank of Valletta plc (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.