Financial news

Trading activity during yesterday's session on the Malta Stock Exchange terminated in the red as the Index registered a marginal decline of 0.3 per cent to end at the 3,067.49 level. Activity in the equity market was relatively subdued as investors transacted an aggregate 15 deals in five different listings.

Lombard Bank Malta was the session's most liquid equity as investors swapped a total of 15,692 shares over two deals for a market consideration of €40,014. The day's activity did not however alter the price as the equity closed unchanged at €2.55. Likewise, Bank of Valletta was for the second consecutive day a non-mover as the equity retained last Friday's closing price of €2.90.

The Bank was nevertheless the session's most actively traded equity when 5,033 shares were exchanged over five deals.

In the rest of the banking sector, HSBC Bank Malta shares depreciated in value as the equity declined by 2c or 0.7 per cent to terminate at €2.68. Volume in the Bank was unusually low as investors transacted 570 shares over two deals.

The session's worst performer was however RS2 Software as the equity shed 3c, which equates to a 4.6 per cent decline to end at €0.62. Trading activity in the company's shares resulted when 9,473 shares were swapped over three deals. The company's board of directors was scheduled to meet during the day to approve the interim financial statement for the period ended June 30.

Medserv remained static during the session when the equity closed unaltered at €3.50. Investors struck a total of three deals for a monetary value of €25,725.

Despite not being active for today's trading session, the board of directors of Go announced that it is scheduled to meet on August 31 to discuss the company's half-yearly financial statements for the period January 1 to June 30, 2009.

Weekly US economic review

The economic indicators over the past week in the United States contained mixed results with gains in manufacturing and the industrial sectors and lower than expected retail sales. During the week, the Federal Reserve upgraded its economic views on the country as "economic activity is levelling out".

The Empire Manufacturing Index, which gauges the New York state factory sector, has shown growth for the first time since April 2008 when the index jumped to a positive 12.08 in August from a negative 0.55 in July, beating forecasts of a three per cent increase. Similarly, industrial output also surprised market expectations of a 0.3 per cent increase as it rose by 0.5 per cent after a 0.4 per cent contraction in June. Meanwhile, consumer price data remained unchanged after increasing 0.7 per cent in June, in line with market forecasts for a flat reading. Moreover, fuel prices fell 0.8 per cent in July after rising by 17.3 per cent the previous month, helping to keep overall prices contained. Retail sales were lower in July, dropping by 0.1 per cent month-on-month versus a prior 0.8 per cent gain in June. This was the first decline in three months, suggesting that consumer spending is still depressed on falling unemployment and wage growth.

During last week's meeting, the US Federal Reserve kept interest rates on hold at record lows as expected, but it gave a longer time frame to complete its purchase of treasuries as part of its quantitative easing programme. The Fed also said that the economy was levelling out after a ravaging recession that started in December 2007.

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.