Financial news

Trading activity during yesterday's session on the Malta Stock Exchange ended on a positive note when gains in HSBC Bank Malta supported the Index by a further 1.5 per cent to close at the 3,131.12 level. Activity in the equity market was still relatively subdued as investors struck a total of 11 deals in four different listings.

HSBC Bank Malta was the session's only equity to register a change in price as it gained 13c or 4.9 per cent to terminate at €2.80. Activity in the financial services company was muted as two investors swapped just a mere 1,000 shares for a market consideration of €2,800.

Following Monday's positive performance, Bank of Valletta shares registered no change in price during yesterday's session as it closed unchanged at €3. The Bank was nevertheless the day's most actively traded equity as investors struck an aggregate six deals for a market value of €12,576.

Similarly, Go shares remained static during the session, closing unaltered at €1.80. Trading activity in the quadruple play communications' company consisted of 4,880 shares which were transacted over three deals.

Investors in Plaza Centres traded in the equity's shares without modifying its price, which closed unchanged at €1.649. Volume was made up of 3,000 shares exchanged across a single deal.

In the fixed interest sector of the market, activity was spread over five corporate bonds and eight government stocks.

Weekly US economic review

In the United States, the economic indicators over the past week continued to deliver mixed results with positive data in the manufacturing sector and negative figures in the job market, as new unemployment benefit claims increased.

The Philadelphia Federal Reserve Bank index, which measures factory activity in the US Mid-Atlantic region, has recorded the first positive reading in August since September 2008 and the highest since November 2007. In fact, it has increased to 4.2 per cent from July's negative 7.2 per cent. Despite being a volatile index which covers one area of the country, it is still a leading indicator of countrywide trends.

Meanwhile, the index of Leading Economic indicators, which is supposed to forecast economic trends six to nine months ahead, rose to 0.6 per cent in July from its revised 0.8 per cent gain in June. This suggests that the recession is bottoming out and that economic activity will likely begin to recover soon. On the downside, initial jobless claims unexpectedly rose by 15,000 to 576,000 in the week ended August 15, retracing much of the previous declines and showing that the labour market remains weak.

In the housing market, sales of previously owned US homes rose for the fourth consecutive month to 7.2 per cent in July from its prior 3.6 per cent a month earlier, beating market expectations of a 2.1 per cent gain. This marks the fastest increase in nearly two years and is seen as a strong sign that housing is pulling out of a three-year slump.

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.