Financial news

Trading activity for yesterday's session on the Malta Stock Exchange resulted in a negative outcome as the index dropped by a marginal 0.2 per cent to terminate at the 3,323.28 level.

HSBC Bank Malta was the session's best performer as the equity gained 7c or 2.3 per cent to close at €3.15. Turnover in the bank's shares consisted of 4,350 shares swapped across four deals.

Likewise, Bank of Valletta was also on the list of gainers as the equity rose by 1c or 0.3 per cent to terminate at the €3.77 level. The price of the equity was trading even higher during the day as it rose to €3.80. However, selling pressure suppressed the price back to its current position.

International Hotel Investments headed the list of losers during the day as the equity lost 5c, which equates to a drop of 6.3 per cent to close at €0.75.

The hotel property and management company was the day's most liquid equity as investors exchanged 8,511 shares across three deals for a monetary value of €6,793.

Middlesea Insurance also terminated the session on a negative note as it depreciated by 1c or 1.5 per cent to close at an all time low at €0.64. The insurance company was the most actively traded equity as investors transacted 7,285 shares over six deals.

Go shares and FIMBank shares registered no changes to their share price as they closed unaltered at €1.939 and $1.11 respectively.

Weekly US economic review

In the United States, third quarter Gross Domestic Product (GDP) figures was revised down but still confirmed that the economy is recovering. In fact, GDP third quarter growth stands at 2.8 per cent from an initial estimate of 3.5 per cent. The main sources of the revision were due to less robust gains in consumer spending, a wider trade gap and a downward revision to non-residential construction.

Meanwhile, durable goods orders were weaker than expected as they dropped by 0.6 per cent in October. After plunging over the second half of 2008 and into early 2009, core bookings (which exclude aircraft and defence) have remained almost flat since February, indicating that business investment has stabilised even though it is not growing meaningfully.

The Federal Open-Market Committee minutes showed that Federal Reserve officials were more optimistic over a durable economic recovery and they were also uneasy over the potential risks of unwanted speculative activity if interest rates were left at low levels for an extended period of time. In the housing market, data was much stronger than anticipated as new home sales rose to an annual rate of 0.43 million from a revised 0.405 million the previous month.

Meanwhile, business activity in the US Midwest expanded in October to the highest level since September 2008, as the business barometer rose to a reading of 54.2 from 46.1 in September.

On a less positive note, US consumer confidence improved slightly in November from earlier in the month but was weaker than October as anxiety lingered over personal finances. In fact, the index of consumer confidence stepped up to 67.4 from 66 in the first half of the 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.