The Malta Stock Exchange index fell marginally again yesterday, closing less than 0.1 per cent lower, to finish at the 3487.963 level, as investors boosted banking stocks but battered the shares of Middlesea Insurance plc.

Middlesea’s shares dropped 7c, or 6.4 per cent, to close at €1.03 as investors continue to take some of the profit realised in the recent run-up of the Floriana-based insurer’s stock price. Two deals took place for a total of 6,050 shares.

In the banking sector, Bank of Valletta plc shares finished in positive territory, gaining 1c9, or 0.6 per cent, to close at €3.299 in 15 trades of 26,238 shares.

FIMBank plc also ended the day on the upside, gaining 3c, or 3.2 per cent, to close at US$0.98, in heavy volume of 264,524 shares across two deals. Malta International Airport plc was the only other issue to trade in the day. The shares of the local airport operator were down marginally, losing 1c in the session, or 0.6 per cent, to close at €1.61.

Late in the day on Tuesday, RS2 Software plc announced its interim financial results for the six-month period ended June 30. The company noted that group revenue had increased 5.7 per cent, to €2.8 million, over the same period in 2009 while profit before tax registered at €78,055 versus a loss of €9,159 for the six-month period ended June 30. The company attributed its improved performance to its increased client base and a general improvement in the extent of services requested by its clients.

Weekly eurozone economic review

In the eurozone, despite the fact that the President Jean Claude Trichet said that the data relevant to the third quarter had turned out “better than expected”, suggesting that the recovery is outstripping expectations, the European Central Bank, as expected, held rates at a record low of one per cent. The possibility of the bank resuming its exit from generous liquidity supplies will be discussed during the next meeting.

In Germany, Europe’s largest economy, the final reading of the inflation rate was revised from 0.2 per cent to 0.3 per cent in July. In the meantime, on a year-on-year basis, this rate was upwardly revised from a previous reading of 1.1 per cent to 1.2 per cent. In the manufacturing sector, also in Germany, on a seasonally adjusted basis, factory orders increased by 3.2 per cent in June. This was more than twice as much as economists forecast and followed a downwardly revised 0.1 per cent drop in May. On a negative note, industrial production unexpectedly fell by 0.6 per cent in June. This drop was mainly led by a drop in investment goods including machinery and trucks and followed an upwardly revise reading of 2.9 per cent the previous month.

Finally, according to a survey by Sentix research group, investor sentiment in the 16-common currency area rose by much more than expected in August to a reading of 8.5 from a negative of 1.3 the previous month. This is the highest level since December 2007 and was mainly driven by a lot of positive macro and company reports.

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.