Financial news

The Malta Stock Exchange Index dropped 0.8 per cent, or almost 30 points, to close at the 3,499.317 level in light trading. Only four equities traded in the day with trading in the shares of the Bank of Valletta plc accounting for the lion’s share of the daily volume.

BOV shares lost 4c9, or 1.3 per cent, as investors continued to take profits on the back of Monday’s jump in the stock price. Trading was heavy as 35,536 shares exchanged hands across 20 deals, as the share price closed at €3.650.

HSBC Bank Malta plc – the session’s biggest loser – also fell victim to profit-taking, as its shares fell 5c, or 1.7 per cent, to close at €2.950 in light volume of two trades for a total of 4,340 shares. Other equities to trade in the day, yet closed unchanged, were Loqus Holdings plc and Middlesea Insurance plc, which closed at €0.180 and €1.00, respectively, both in light volume. On Tuesday, Loqus Holdings dropped 14c, or almost 44 per cent.

Trading in the corporate bond market continued to be light yesterday as €128,165 nominal across 15 deals were executed. Bonds finished mixed with the day’s biggest move being made by the 6% Gasan Finance 2014-2016 issue, which gained €1.50 or 1.5 per cent, to close at the €103.00 level on volume of €16,500 nominal across two deals. The bond to suffer the biggest loss was the 6.25% International Hotel Investments 2015-2019 bond, which fell €1.00, or one per cent in a single deal of €10,000 nominal.

Weekly eurozone economic review

In the United States, real Gross Domestic Product (GDP) rose at a two per cent annualised rate in the third quarter, up from a 1.7 per cent increase in the second quarter. This small acceleration was mainly attributed to a rise in consumer spending of 2.6 per cent, the fastest pace since the fourth quarter of 2006.

In the manufacturing sector, the headline durable goods data was stronger than expected with a 3.3 per cent gain for September, but the underlying figure excluding transport orders was weaker than expected with a 0.8 per cent monthly decline. Meanwhile, the Institute for Supply Management (ISM) index for manufacturing also bet expectations in October, increasing to the highest level since May, edging up to a reading of 56.9 from 54.4 in September. This has alleviated some concerns regarding the expansion of the manufacturing sector which has slowed over the summer.

In the housing market, existing home sales rose to an annual rate of 4.53 million from a revised 4.12 million the previous month, while home sales rose to an annual rate of 307,000 from a revised 288,000. A separate report showed that the number of people claiming unemployment benefits for the first time, fell to 434,000 in the latest week from a revised 455,000 previously. Other data this week continued to reinforce expectations of more monetary stimulus from the Federal Reserve as consumer spending rose by less than the expected 0.2 per cent in September, while income fell for the first time in 14 months by 0.1 per cent.

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.