Financial news

Trading activity on the local equity market was rather subdued yesterday as a mere 31,913 shares exchanged hands in 28 deals across five issues to see the index close up almost 16 points, or 0.4 per cent and close at 3,842.470

The biggest mover on the day was International Hotel Investments plc whose shares closed down 2c, or 2.5 per cent, to end the session at €0.78.

Also seeing trading action was Bank of Valetta plc. Shares in the Maltese retail bank rose another 5c yesterday to finish at €3.45, up almost 1.5 per cent.

The other issue to register a change in stock price was HSBC Bank Malta plc whose shares climbed 4c8 to close at €3.898.

Other stocks to trade on the day were FIMBank plc which closed unchanged at US$1.18 in two trades of 2,000 shares and Go plc which closed at €2.30, also unchanged in three deals of 5,200 shares.

Also on Monday, Maltapost plc made a company announcement whereby the directors advised that for the period from October 1, 2009 to date, the company had achieved the same level of turnover as had been achieved during the previous corresponding period and that its operating profitability had remained much in line with the forecasts established at the beginning of the financial year. Furthermore, the directors noted that the financial fundamentals of the company remained strong and believe that, barring unforeseen circumstances, the company will meet its performance targets

The week ahead - Economic indicators for week starting February 15

In the United States, the producer price index is expected to increase by 0.8 per cent in January, due to higher energy prices. Headline Consumer Price Index (CPI) is expected to increase by 0.3 per cent for the same month The Federal Open Market Committee (FOMC) minutes of the last Federal Reserve meeting may provide the market with any details about discussions of the possibility of new quantitative easing measures or the timing and structure of exit strategies. Meanwhile, Industrial Production is expected to have increased in the month of January after gains in December and November, however these will remain below levels that would cause inflationary pressure. In the housing market we shall have numerous data releases this week, including housing starts, building permits.

In the eurozone, the focus will be on the German ZEW investor confidence for February. This is likely to show that investors are more pessimistic about the outlook for the region given sovereign debt issues and uncertainty about the sustainability of the recovery. In addition, eurozone trade balance data is expected to be released on Wednesday, while the Purchasing Managers Index (PMI) for both manufacturing and services sectors are expected to be released on Friday.

In the United Kingdom, a busy data week is expected, starting with the inflation figure for January, which is expected to increase by 3.5 per cent on a year-on-year basis due to the VAT hike in the same month. The Bank of England minutes will shed more light on the Bank's policy intentions and assessment of recent developments. We shall also have the International Labour Organisation (ILO) unemployment rate for the three months, ending December 2009. Finally, government borrowing data should show improved revenues following the hike in VAT.

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.