Financial news

Following Monday's holiday, yesterday's activity resumed as usual at the Malta Stock Exchange. The Index closed the session in negative territory, dragged down entirely by a negative performance in the banking sector, as it shed 0.2 per cent to terminate for the first time since July just below the 3,000 level. In the equity market, activity was spread over an aggregate 13 deals in four different listings.

HSBC Bank Malta ended the day in the red as the equity dropped by 1c or 0.4 per cent to terminate at €2.61. The bank commenced the session on a positive note as it traded at an intra-day high of €2.65. However, during the day, selling pressure resulted in a further decline as the equity closed at its current standing. Activity in the financial services company resulted when investors swapped 5,500 shares across six deals.

Bank of Valletta also ended the session on a negative note as its shares nudged down by 1c or 0.3 per cent to close at the €3.01 level. Investors in the bank transacted a total of 1,290 shares spread over three deals and a market consideration of €3,882.

Simonds Farsons Cisk was the day's only gainer as the equity rose by a marginal 0c5 which equates to a 0.3 per cent increase to end the session at €1.60. Turnover in the company consisted of an aggregate of 3,129 shares dealt over two deals.

Maltapost was the session's sole non-mover as the equity closed for the second consecutive session unchanged at €0.69. Trading activity in the postal operator resulted when 2,056 shares were swapped over two deals.

Weekly US economic review

In the United States the economic headlines over the past week were generally stronger than expected with gains registered in both industrial production and retail sales. Other significant economic indicators were in the housing market and the inflation figures.

Headline retail sales in the US rose 2.7 per cent month-on-month in August after decreasing by 0.1 per cent during the previous month, boosted by the cash for clunkers programme and higher gasoline prices.

However, core retail sales, which exclude gasoline and cars also showed an impressive advance, increasing by 0.6 per cent last month. Industrial production also registered gains in August, rising by 0.8 per cent supported by a rebound in utility usage and a further recovery in the automotive output. Meanwhile, the pace of deflation eased in August as US consumer prices fell by an annual 1.4 per cent compared to a 1.9 per cent drop in July. Core consumer price inflation, which excludes food and energy, is still in positive territory but decreased from 1.6 per cent to 1.5 per cent.

In the housing market, US homebuilder sentiment rose in September to its highest levels since May 2008.

In fact, the NAHB/Wells Fargo Housing Market Index climbed to a reading of 19 from 18 in August, in line with the forecast in a Reuters' survey. On a final note, a measure of the US economy's prospects scaled a one and a half year high in August but a record rise in home loan defaults cast doubts on the durability of the apparent recovery from recession.

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.