Financial news

Investors continue to shy away from equities as the MSE lost another five points, or 0.2 per cent, yesterday to close at 3341.077 in very light trading of 9,388 shares in eleven deals across five equities.

Middlesea Insurance plc saw a resurgence in its share price as it climbed 6c8, or almost 6.5 per cent, to finish at €1.12 in modest volume of 2,000 shares across three deals. The Floriana-based insurance company has been one of the few bright spots for the MSE as its shares have climbed significantly since December of 2009.

Bank of Valletta plc managed to regain some of the losses its shares have suffered in recent sessions by climbing 1c1, or 0.4 per cent, to close at €3.011 in two trades of 2,379 shares. BOV's main competitor in the retail banking sector, HSBC Bank Malta plc, failed to trade in the day, making yesterday's session the fifth consecutive session where HSBC's shares have failed to register a change in their closing price.

Closing in negative territory was Go plc, which fell 8c, or 4.2 per cent, to end at €1.85, on two deals of 1,007 shares.

Also closing down on the day was Maltapost plc, which lost 5c, or 5.6 per cent, to close at €0.85 in two trades of 2,002 shares.

In the tourism sector, Malta International Airport plc dropped 4c, or 2.5 per cent, to end the session at €1.58 in two deals of 2,000 shares.

Weekly US economic review

In the United States, the employment report came in weaker than expected, showing signs of a sluggish economy, weak consumption and a loss of momentum. Private payrolls increased by 83,000 lower than expectations of 110,000 increase, while state and local governments fired 10,000. The construction sector shed another 22,000 units. Though the unemployment rate dropped significantly to 9.5 per cent, it was primarily driven by 625,000 job seekers leaving the labour force.

In the manufacturing sector, the Institute of Supply Management (ISM) declined more than expected to a reading of 56.2 in June from 59.7 the previous month. This was much lower than the reading of 59 which was expected. In the meantime, new orders for manufactured goods declined by 1.4 per cent in May to $413.2 billion, after increasing by one per cent the previous month. Excluding transportation, new factory orders decreased by 0.6 per cent during May.

In the housing market, new sales contracts on existing homes fell sharply in May after a federal subsidy for buyers expired at the end of April. According to the National Association of Realtors, the pending home sales index plunged 30 per cent in May after increasing by 23 per cent between January and April. Finally, an index for consumer confidence measured by the Conference Board, fell to a reading of 52.9 in June, the lowest level since March. This is much lower from the downwardly revised 62.7 in May as consumers are increasingly worried about jobs and the economy

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.