Financial news

Trading activity during yesterday's session on the Malta Stock Exchange ended on a marginally negative note as the Index trimmed part of the gains it registered during the previous day's session, shedding 0.03 per cent, to close at the 3,521.87 level. This occurred when the positive showing in two equities did not suffice to make-up for the losses registered in another four listings. Activity during the day was spread across an aggregate of 10 different equities.

Crimsonwing was by far the session's worst performer, as the equity dropped by 6c or 13 per cent to terminate at €0.40. This drop occurred when two investors swapped 4,000 shares.

On the contrary, the day's best performer was Maltapost as the equity rose by 5c or 5.9 per cent to terminate at €0.90. Investors in the postal operator transacted an aggregate of 22,000 shares across two deals. The only other gainer during the day was Bank of Valletta as the equity rose by a mere 0c4, which equates to an increase of 0.1 per cent to close the session at the €3.265 level. Meanwhile, shares in Lombard Bank ended in negative territory as the equity shed 3c1 or 1.1 per cent to terminate at €2.879.

Middlesea Insurance and Go also ended the day in the red as their shares depreciated marginally by 0c1 and 0c5 to terminate the session at €1.149 and €1.895 respectively.

Despite being active during the day, shares in HSBC Bank Malta, International Hotel Investments, FIMBank and Malta International Airport ended the day without registering any change in their respective prices. These terminated the session at €2.98, €0.89, $1.00 and €1.600 respectively.

Weekly US economic review

In the United States, data during the past week was relatively weak. Attention was focused on mixed data related to the housing sector. Sales of new homes rose by 23.6 per cent during June to an annual pace of 330,000, rebounding from May's record low when it fell by 36.7 per cent. In addition, the sales pace during June was the second lowest since records started in 1963.

On a slightly weaker tone, the downward revisions to sales estimate for April and May have showed that the housing market is still weak and economic growth in the second quarter has moderated. In addition, new home construction dropped 5.0 per cent to a seasonally adjusted annual rate of 549,000 units, the lowest since October. This was the second consecutive decline and was well below market expectations for a 580,000-unit rate. This has pushed the number of houses available for sale to the lowest level in nearly 42 years. In fact, single-family home prices as measured by 20-city composite price index rose by a more than expected 0.5 per cent in May after an upwardly revised 0.6 per cent gain during the previous month. This was the biggest yearly gain since August 2006.

On a negative note, initial jobless claims increased by more than expected: 37,000 to 464,000 in the week ended July 17. This shows that the lack of jobs will continue to hamper consumer spending, the biggest part of the economy, and lead to slower growth in the second half of this year. However, the number of people receiving unemployment insurance and those getting extended payments dropped. Finally, an index measuring consumer confidence fell to a reading of -45 in the week ending July 18, down from -44 during the previous week.

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.