The Malta Stock Exchange index closed strongly higher yesterday as banking stocks surged on the back of positive earnings results issued on Friday by Bank of Valletta plc. The index finished up more than 54 points, or 4.6 per cent, to close at 3,528.344 points in heavy volume of 195,822 shares across 97 deals.
The day’s biggest gainer was the stock of Bank of Valletta plc, which gained 35c, or 10.5 per cent, to close at €3.710 in heavy trading volume of 55,490 shares spread across 47 deals.
Also performing well were the shares of Lombard Bank plc, which gained 10 per cent, or €0.25, on volume of 48,943 shares across 17 deals. The stock closed at the €2.750 level.
Not to be left out, HSBC Bank Malta plc, also put in a good showing, gaining 20c, or 7.1 per cent, to close at €3.00 in 21 trades for a total of 51,260 shares.
Finishing lower were shares of International Hotel Investments plc, which fell by 2c, or 2.5 per cent in four deals for a total of 25,057 shares.
Other shares which traded in the session, yet failed to see a change in their market price included GO plc, which closed at €1.870 in five deals of 6,300 shares, and Maltapost plc, which traded in a single deal of 2,022 shares to close at €0.910. Also trading was Middlesea Insurance plc, which also ended the session unchanged, witnessed 6,750 shares exchange hands across two deals to close at €1.
The week ahead - Economic indicators for week starting November 1
The US will this week be busy in terms of economic and market events. After the release of the manufacturing Institute for Supply Management index and data regarding personal income and expenditure yesternday, the main focus will be the Federal Open Market Committee policy announcement tomorrow. The US central bank will likely be announcing another round of government bond purchases (known as Quantitative Easing II). Meanwhile, the ISM for the services industry is expected to signal further slowdown, while data for factory orders is expected to show an increase of 1.5 per cent in September. The week ends with the monthly employment report, which is expected to show that the increase in private sector employment should remain weak and as a result the unemployment rate in October is expected to have remained at 9.6 per cent.
On the contrary, in the eurozone, the schedule of economic indicators for the next few days is rather light. The final purchasing managers’ indices for both manufacturing and services industries for all the countries are not expected to change. The main focus this week will also be the European Central Bank’s meeting on Thursday. Although no change is expected in interest rates and the enhanced credit measures, the opinions of the ECB on the plans to reform the Stability Growth Pact and the expansion of the US Fed’s government bond purchase plan will be interesting. Other data for the euro-area this week includes the Purchasing Price Index and retail sales figures, both for the month of September.
In the UK, the Bank of England’s Monetary Policy Committee is likely to generate interest, on Thursday, given a likely three-way split between members calling for no change, extra monetary easing and monetary tightening. Meanwhile, the interest rate and the asset purchase targets are both expected to remain unchanged at 0.5 percent and £200 billion respectively. Other important economic indicators this week will be the Purchasing Manager Index for the services industry tomorrow and inflation pressures as measured by the Producer Price Index, both for the month of October.
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.