Trading during the first day of the week at the Malta Stock Exchange resulted in a marginally negative outcome for the local Index which slipped by 0.2 per cent as it nears the 3,000 level, closing at 3,041 points. Activity in the equity market was relatively subdued as investors swapped 17 deals, which were struck in six different listings.
Go was the sole positive performer during the session as the equity increased by 1c or 0.6 per cent to close at €1.80. The quadruple play communications' company was also the day's most liquid and actively traded equity as investors swapped 13,000 shares over six deals for a market consideration of €23,340.
On the contrary, Maltapost shares were the worst performers as the equity declined by 1c, which equates to a 1.4 per cent drop to end the day at €0.69. Investors in the postal operator transacted a total of 4,000 shares over three deals.
In the banking sector, HSBC Bank Malta came once again under selling pressure as it shed a further 2c or 0.8 per cent to terminate the session at €2.60, even though it traded at an intra-day high of €2.64. The bank transacted 4,375 shares over a total of five deals.
Bank of Valletta also incurred a negligible decline, as its shares dropped by a mere one-tenth of a cent to close at €2.899. Volume in the financial services company was uncharacteristically low as two investors exchanged 400 shares.
International Hotel Investments and Simonds Farsons Cisk were the day's only non-movers as their prices closed unchanged at €0.841 and €1.68 respectively. The hotel property and management group saw the execution of 2,250 shares over a single deal, while volume in SFC was subdued as two investors swapped a mere 508 shares.
In the fixed interest sector of the market, activity was spread over four government stocks and six corporate bonds. The best performer in the corporate debt market was the 5.35% Bank of Valletta 2019 which increased by 75 ticks as two investors exchanged €5,000 nominal to terminate at €103.75. The 6.15% Bank of Valletta 2010 was also a gainer as it rose by 50 ticks when €14,000 nominal were transacted over a single deal to close at €100.50.
The highest turnover in the sovereign debt market was registered in the 5.7% MGS 2012(III) as €39,135 nominal were swapped over two deals to end the session at €107.43.
The week ahead - Economic indicators for week starting August 10
The economic calendar for the week ahead will feature the Consumer Price Inflation for the US and the eurozone, gauging the changes in the average prices of goods and services purchased by households during the month of July, while in the UK attention will be focused on jobless claims.
The week's highlight in the US will be the Federal Reserve meeting tomorrow, which is expected to bring no changes to the current rates of interest or any increase in the quantitative easing measures. Meanwhile, the country's annualised consumer price inflation rate for July is expected to reach a figure of 1.9 per cent, its lowest point in this downward trend. Industrial production on Friday is expected to increase by 0.4 per cent in July from its current -0.4 per cent, while consensus predicts that last month retail sales will register a 0.4 per cent increase from the 0.6 gain during June. On the other side of the Atlantic, there are more positive economic signals, as Gross Domestic Product figures for the second quarter of 2009 are expected to decline by 0.5 per cent, which is a much lower pace of contraction from the -2.5 per cent during the previous quarter. Meanwhile, analysts predict that consumer price inflation will drop by -0.6 per cent in July from its prior 0.2 per cent, while industrial production is anticipated to continue expanding by 0.2 per cent in June from a 0.5 per cent increase during the previous month.
In the UK, jobless claims for the month of July are expected to increase by 28,000 from 23,800 in June. This news is also supported by a further increase in the ILO unemployment rate which is anticipated to reach a figure of 7.7 per cent from 7.6 per cent. Meanwhile, the Bank of England Quarterly Inflation Report will be published tomorrow following the unexpected decision by the bank to increase its quantitative easing programme by a further £50 billion.
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.