Financial news

Trading activity during yesterday's session on the Malta Stock Exchange extended the gains registered during Monday's session as the Index rose by a marginal 0.1 per cent to terminate at 3,255.1 points.

In the banking sector, Lombard Bank Malta was the session's only gainer as the equity rose by 5c, which equates to a 1.9 per cent increase to terminate at €2.75.

Bank of Valletta registered an intra-day high of €3.825 but later pared gains when selling pressure moved the price down to the €3.80 level, leaving its share price unchanged from the previous session. The bank also registered the highest number of trades as 18,318 shares were exchanged over 14 deals.

HSBC Bank Malta was also a non-mover during the session as the equity closed unchanged at €2.84. Trading activity in the financial services company resulted when 6,064 shares were transacted over six deals.

Outside the banking sector, Crimsonwing was the session's best performer as its share price rose by 2c or 6.9 per cent to close at €0.31. Two investors in the company exchanged 7,000 shares.

Buying activity also supported the price of Go shares as the equity rose by 0.9 per cent to end the session at €1.685.

A volume of 10,400 shares in the quadruple play telecommunications company was transacted across four deals.

Weekly US economic review

The most significant development in the US over the past week was the continued deterioration in the labour market. The Federal Reserve's Open Market Committee meeting last week was also closely followed, as well as the publication of manufacturing and consumer credit data.

The US jobless rate has unexpectedly increased to 10.2 per cent in October, reaching double figures for the first time since the early 1980s, whilst the number of people employed (excluding farm workers) fell by 190,000 in the same month. Although the pace of decline has moderated from 219,000 in September, it has not done so as quickly as expected.

Meanwhile, consumer credit dropped by $14.80 billion in September, which is much larger than the $10 billion expected by analysts. This indicates that households prefer to reduce debt and are still reluctant to spend. In fact, consumer credit has now declined for eight consecutive months, which is the longest downward streak since the series started in 1943.

The Federal Reserve expressed growing confidence that an economic recovery was building, even as it stuck to its commitment to keep borrowing costs near zero for an 'extended period'.

Meanwhile, the ISM Manufacturing index increased to a reading of 55.7 in October from its previous 52.6. However, the non-manufacturing ISM survey, which comprises the largest part of the economy (between 80 per cent to 90 per cent), fell to a reading of 50.6 in October from 50.9 in September.

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.