Financial news

During yesterday’s session on the Mata Stock Exchange the Index managed to recoup the marginal losses it registered during Monday’s session, albeit increasing by a minimal 0.03 per cent to close at the 3,344.825 level.

FIMBank headed the list of losers during the day as the equity declined by 1c of a US dollar, which equates to a drop of one per cent to terminate at the €0.950 level.

Meanwhile, Bank of Valletta shares also ended the day in the red as the equity lost 1c or 0.3 per cent to close at €3.240. During the day, BOV shares were trading considerably higher as the company’s share price was trading at €3.270. However, selling pressure later during the day pushed the price to its current position.

HSBC Bank Malta also ended the day in negative territory, albeit shedding a mere half a euro cent to end at the €2.800 level.

Beyond the financial sector, Sim-onds Farsons Cisk was the day’s best performer as the company’s share price rose by a substantial 11c5 or 7 per cent to terminate at €1.750. Volume was however on the low side as 1,200 shares were swapped across two deals. Likewise, Middlesea Insurance shares also ended the day on a positive note, as they appreciated by 2c or 2.1 per cent to terminate at €0.970.

Malta International Airport and Maltapost ended the day without registering any changes to their respective share prices as the equities closed unaltered at €1.520 and €0.900 respectively.

Weekly US economic review

In the United States, data from the dominant service sector showed that the pace of growth accelerated last month in spite of a slowdown in Chinese and European firms. The Institute of Supply Management Index for the non-manufacturing sector increased to a more-than-expected level of 53.2 in September, from 51.5 which was registered the previous month.

Meanwhile, important data coming from the labour market showed that the US economy has shed more jobs for the fourth consecutive month in September, which was mainly due to a slower private hiring and more government layoffs. According to the labour department, non-farm payrolls dropped by 95,000, much higher than the 5,000 drop which was expected by analysts. Meanwhile, private payrolls, which at the moment is a better gauge of the labour market, increased by less than expected 64,000 in September, after registering a gain of 93,000 employment during the previous month. On a positive note, the unemployment rate held steady at 9.6 per cent, whereas economists had expected this rate to tick up to 9.7 per cent.

Finally, according to the Federal Reserve, total consumer credit outstanding declined for the seventh consecutive month in August since demand for credit cards continued to fall. Total consumer credit fell by $3.34 billion in August after contracting by $4.09 billion the previous month. Card credit; fell for the 24th straight month in August as revolving credit fell by $4.99 billion after a decline of $4.98 billion during 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.