The Malta Stock Exchange Index dropped slightly yesterday as the session was marred with a lack of trading as investors staying on the sidelines. The index finished just one point lower to close at the 3394.175 level on volume of 9,373 shares in eight deals across two equities.
After losing 1c in Tuesday’s session, shares in Bank of Valletta plc recouped those losses yesterday and closed at €3.23 in six trades for a total of 6,273 shares.
Another banking institution, FIMBank plc, saw its shares lose 3c, or 3.0 per cent in the session, to close at €0.97 in two trades of 3,100 shares. FIMBank shares have been declining steadily of late and have dropped almost 12.0 per cent since the beginning of the year. They are currently trading at their lowest level in almost five years.
Trading in the corporate bond market was also considerably weak as €124,900 nominal were traded across sixteen deals in seven corporate issues. Whereas bonds had shown strength earlier in the week, despite low trading volumes, yesterday’s session finished mixed with three bonds finishing higher and an equal amount finishing lower, with one bond closing unchanged. Bonds in banking firms continued to dominate market activity as Bank of Valletta’s 4.80% 2020 issue made the biggest move, dropping 50c, or 0.5 per cent, to close at €103.00, on volume of €50,000 nominal across five deals. HSBC’s 5.90% 2018 bond also traded in the session, closing up €0.18, or almost 0.2 per cent, to close at €105.51 in a single trade of €27,200 nominal.
Weekly eurozone economic review
In the eurozone, industrial production unexpectedly stagnated in July, against projections of a marginal 0.1 per cent increase. These figures add to signs that the euro region’s export-led recovery is loosing steam, as output for June was also revised down to show a 0.2 per cent decline from a previous 0.1 per cent drop. Meanwhile, European inflation slowed in August, as expected, led primarily by lower energy costs. In fact, consumer prices in the 16-country area increased 1.6 per cent from a year earlier after rising 1.7 per cent in July.
In Germany, the Mannheim-based ZEW Index of investor and analyst expectations showed that investor confidence dropped to a 19-month low in September as budget cuts across the euro region and slowing global growth obscured the outlook for Europe’s largest economy. Meanwhile, the European Central Bank published its September Monthly Report, and based on its regular economic and monetary analyses, it expects that the economic recovery in the near future is to proceed at a moderate pace, with uncertainty still prevailing. The monetary analysis confirms that inflationary pressures over the medium term remain contained, as suggested by weak money and credit growth.
In a separate report, the number of people employed in the second quarter of the current year remained stable when compared to the first three months of 2010. However, employment in the second quarter fell 0.6 per cent when compared to the same period of 2009, confirming data that the job market was slow to recover from the worst economic crisis.
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.