Financial news

Yesterday's session on the Malta Stock Exchange extended the gains registered during Monday's session as the index rose by a further 0.3 per cent to terminate at the 3,437.6 level.

In fact, FIMBank headed the list of gainers as the equity rose by six cents of a US dollar, which equates to an increase of 5.5 per cent to terminate at $1.16.

Bank of Valletta shares registered no movement during the day as they closed unchanged at €3.80. During the session the shares dipped by 1c at €3.79, but moved back up at their current level, supported by a bout of buying activity. In fact, the bank registered the day's highest number of trades as investors transacted 12,591 shares across 17 deals.

Likewise, HSBC Bank Malta also closed unaltered during the day, closing at the €3.25 level. Investors in the bank exchanged 3,500 shares across three deals. Meanwhile, Lombard Bank Malta also registered no change in its share price, to close at €2.87.

Datatrak Holdings and Malta International Airport both ended the session in positive territory as the equities rose by 0c2 and 1c1 to terminate at €0.72 and €2.40 respectively.

Go and MaltaPost also registered gains during the session as they rose by 0.5 per cent and 1.4 per cent to terminate at €2.06 and €0.66 respectively.

Crimsonwing closed the session unmoved during yesterday's session, when in the previous day it registered an increase of 2c0 or 5.4 per cent to close at €0.39.

Weekly US economic review

In the United States, the trade deficit was lower than expected as it dropped by 7.6 per cent to $32.9 billion in October, when economists in a Reuters survey expected the gap to widen to about $32.9 billion. The positive figure was supported by a weaker dollar, which helped to boost exports. Meanwhile, headline retail sales in November advanced by 1.3 per cent, boosted by a substantial increase in car sales and a price-induced jump in fuel station receipts. More importantly, the core retail sales figures, which excludes cars and fuel, increased by 0.6 per cent in November. The data points to a moderate gain in real consumption in the fourth quarter, despite the expiry of the cash-for-clunkers program. The University of Michigan Index of consumer confidence rebounded this month to a reading of 73.4, which is the highest recorded level since the beginning of 2008. In fact, the index of buying conditions for household durables jumped by 18 points in December, as a record, 54 per cent of respondents noted good buys were available.

US producer prices rose more than expected in November, lifted by a surge in energy costs and recorded the first year-on-year gain since last November. In fact, the Labour Department reported that factory prices rose 1.8 per cent, the largest gain in three months, following a 0.3 per cent rise in October. Compared with the same period last year, producer prices surged 2.4 per cent in November, posting their first gain in a year. Meanwhile, a barometer of manufacturing in the New York State unexpectedly plummeted in December, as it fell to 2.55 from 23.51 a month earlier. This signals that the recent revival in the factory sector is slowing.

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.