The local equity market was a hive of activity yesterday, with investors trading in a total of 11 equities. The MSE Index closed the session slightly lower at 3,812 points, weighed down by weakness in Middlesea Insurance.
FIMBank was the day's most actively traded equity with a grand total of 165,152 shares, carrying a market consideration of $322,686, being exchanged across 8 transactions.
The equity gained a further 0.2 per cent to close the day at $1.955.
Midway through the session, Lombard Bank Malta announced a pre-tax profit of €7.7 million for the first 6 months of this year, which represents a 60 per cent increase over the same period last year.
Nevertheless, the equity terminated the session marginally lower as 6,563 shares were exchanged across 4 transactions, squeezing the price down to €2.899.
Medserv gained 1c as 4,000 shares were purchased across 3 transactions, helping the equity reclaim the €4 level. On Monday evening the oil industry services provider reported a pre-tax profit of €684,166 for the period ending June 30, this year, reversing a loss of €529,750 during the corresponding period of the previous year.
Middlesea Insurance was the day's worst performer, with the equity shedding 24c or 7.2 per cent as investors finally reacted to the Group's interim results, reported on August 7, which showed a pre-tax loss of €2.1 million. The equity closed the session at €3.10, its lowest equivalent level since the end of January 2005.
Crimsonwing gained 1c9 or 3.8 per cent on soft buying activity which pushed the equity to €0.519. On the contrary, selling activity in Malta International Airport brought the equity down to €2.999, its lowest level in more than 3 years.
Weekly eurozone economic review
Comments from high profile European Central Bank (ECB) members were not of much comfort to market participants. ECB president Jean-Claude Trichet stated that markets are still in correction while speaking at Kansas City Federal Reserve bank's annual monetary policy conference. ECB Council member Alex Weber also voiced his concern on economic growth prospects for the third quarter.
On a more positive note Central bank policy maker Klaus Liebscher, who will step down from both the ECB and as head of the Austrian central bank at the end of the month, said there was no denying that Europe's economy was now slowing, but argued it was a cyclical issue rather than a serious problem.
Eurozone industrial new orders fell by a less than expected 0.3 per cent in June according to the European Union's statistics office. Compared with June last year, new orders fell 7.4 per cent. New orders are an indication of future industrial production and therefore overall economic activity, which in turn may impact monetary policy at the ECB.
Meanwhile, the outlook for German exports has deteriorated to its worst level in over 15 years, according to an index compiled by the Munich-based Ifo economic research institute.
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.