MSE daily report - November 25, 2009

Yesterday's session on the Malta Stock Exchange extended the positive trend registered during yesterday's session as the index rose by a further 0.5 per cent to terminate at 3,335.7 points.

In the banking sector, HSBC Bank Malta was the sole gainer as the equity gained a further 7c or 2.3 per cent to terminate at €3.07. This is the highest price registered in the equity since September last year.

On the contrary, Bank of Valletta shares were struck by a bout of selling pressure as the equity shed 4c or 1.1 per cent to close at €3.76.

After recovering some lost ground on Monday, Middlesea Insurance resumed their negative trend as the share price depreciated by 10c or 13.3 per cent to terminate at lowest price ever recorded of €0.65.

Go shares rose to a new high for the current year as they rose by 2c5 or 1.3 per cent to terminate at €1.895.

International Hotel Investments and Island Hotels Group Holdings were also on the list of gainers as they both appreciated by 1c to terminate at €0.81 and €1.02, respectively.

GlobalCapital shares ended the session in positive territory as they rose by 6c5 or 6.5 per cent to close at €1.065. Volume in the company consisted of just 240 deals swapped across a single transaction.

Datatrak and Medserv were the session's sole non-movers as they closed unchanged at €0.07 and €4 respectively. Medserv shares remained well supported at their all-time high of €4 as investors swapped a round figure of 1,000 shares over two deals.

Weekly US economic review

In the United States, housing market data published throughout the reported week was disappointing, as housing starts dropped by nearly 11 per cent in October to 529,000 units, the lowest since April. Declines were seen across every region and sector, with the steepest falls registered in the number of multi-family developments, which fell by 35 per cent on the month. The extension of the homebuyer tax credit scheme should mean that starts are likely to pick up again. On the contrary, existing home sales rose to their highest levels in more than two and a half years in October, as they surged by 10.1 per cent.

Meanwhile, industrial production data was lower than expected with the October increase held at 0.1 per cent while expectations were of a 0.4 per cent monthly increase. As far as inflation is concerned, there was a 0.3 per cent increase in consumer prices for October, while core prices rose 0.2 per cent for the month.

Headline prices fell 0.2 per cent over the year, but this was much less than the 1.3 per cent decline seen the previous month. Inflation is likely to tick up in the months ahead, as the steep declines in oil prices seen over the reported period drop out.

Meanwhile, the Index of Leading Indicators rose for the seventh consecutive month in October, up to 0.3 per cent after a one per cent gain in September. Moreover, manufacturing activity in the US Mid-Atlantic region hit a two-year high in November, indicating the economic recovery was gaining momentum. In fact, the Philadelphia Fed Index was stronger than expected with a further increase in the headline index to 16.7 from 11.5 the previous month.

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.