Financial news

Trading activity during yesterday's session at the Malta Stock Exchange resulted in a marginal increase as the index closed at the 2,943.71 point. Activity in the equity market was relatively muted as investors swapped an aggregate 19 deals over six different listings.

International Hotel Investments was the day's best performer as the equity gained 1c, or 1.3 per cent to close the session at €0.81. The hotel property and management company was also the sessions' most liquid equity as investors transacted a total of 7,153 shares spread over five deals.

Similarly, Malta International Airport was also a gainer during the day as it rose by 1c or 0.5 per cent to close at €2.101. Activity in the airport operator was spread over two deals carrying a market consideration of €9,688.

In the banking sector, HSBC Bank Malta was the day's sole equity to close in positive territory albeit registering only a 1c increase which equates to a 0.4 per cent rise, thereby terminating the session at €2.61. Volume was on the low side as two investors swapped a mere 1,540 shares.

Go headed the list of losers during the session as the equity shed 2c or 1.10 per cent to end the day at €1.80. The quadruple play communications' company transacted an aggregate of 4,900 deals over three deals. The company also announced that Forgendo Limited, which is the venture company between Go plc and Emirates International Telecommunications (Malta) Limited has acquired a further 400,000 shares in Forthnet SA issued share capital for a total consideration of €739,560.

New lows were registered for FIMBank as the equity declined by 1c of a dollar to terminate at $1.17. The trade finance specialist transacted a total of 1,325 shares over two deals.

Bank of Valletta was the day's most actively traded equity as 5,572 shares were swapped over six deals for a market consideration of €14,758. The bank nevertheless ended the session in red as the equity declined by 2c4 or by 0.9 per cent to close at €2.635.

In the fixed interest sector of the market activity was spread over 11 government stocks and three corporate stocks. The highest turnover in the government securities was registered in the 5.7% MGS 2012 (III) as 3,018,403 nominal were transacted over two deals for a closing price of €108.35.

Weekly US economic review

The weekly economic data emanating from the United States was overall positive particularly in the manufacturing sector and in the housing market. On a negative note however, the US job market weakened in June after rebounding for the first time in 21 months, reaffirming expectations that employment in the country has yet to reach a bottom.

In fact, the monthly non-farm payrolls report came in weaker than expected, with a decline of 467,000 jobs in June compared to 322,000 in May, reversing the positive trend that was experienced since February of fewer job losses each month. Furthermore, US unemployment stands at 9.5 per cent from its previous 9.4 per cent and is expected to continue increasing. Despite this negative data in the labour market, economic stabilisation is not in doubt as the manufacturing Institute of Supply Management Index, which is a leading indicator of industrial production increased to a reading of 44.8 in June from its previous reading at 42.8 in May. This sixth monthly increase is nevertheless below the 50 mark that separates expansion from contraction as recovery in growth remains sluggish.

In the housing market, prices as measured by the Case-Shiller Index of 20 main metro areas, declined at the slowest pace in six months in April. Moreover, eight out of the 20 cities surveyed showed an increase in prices from March with San Francisco alone registering a 0.6 per cent increase in price on the month, but was still down 26 per cent compared to a year ago.

This article has been prepared by Bank of Valletta plc (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.