Financial news

The Malta Stock Exchange Index fell more than 16 points, or 0.5 per cent yesterday as investors sold financial services stocks, pushing the index down to the 3,505.841 level.

A single deal of just over 300 shares in GlobalCapital plc caused the share price of the financial services stock to tumble almost 23 per cent early in the session. Bargain hunters then came in to lift the stock off its daily low of €0.989, as the shares closed at €0.997, down 22.1 per cent, on total volume of 10,427 shares across six deals.

FIMBank plc shares were also shunned by investors yesterday. Two trades for a total of 50,000 shares exchanged hands and pushed the share price down 1c, or 1.1 per cent, as the stock closed at US$0.930.

HSBC Bank Malta plc shares also finished lower on the day, dropping 3c, or 1.0 per cent, to close at €2.950 in four deals for a total of 10,746 shares

The other banking stocks to trade in the session, Bank of Valetta plc and Lombard Bank Malta plc, both finished the session unchanged, at €3.700 and €2.650, respectively, on moderate to low volumes.

Other shares seeing activity in the session included Go plc, which gained a marginal 0c1, or 0.1 per cent, to close at €1.900 on volume of 2,400 shares across five deals.

Also trading on the day was Malta International Airport, which closed unchanged at €1.648, in a single deal of 673 shares.

Weekly US economic review

In the United States, consumer prices increased less than expected in October and the 0.6 per cent gain in the year-on-year core-rate was the smallest on record. In fact, the Consumer Price Index (CPI) rose by 0.2 per cent last month, as energy costs increased, after edging up 0.1 per cent in September. Excluding volatile food and energy prices, core CPI was flat for a third consecutive month in October.

Meanwhile, producer prices recorded their largest fall in more than four years in October, while a separate report showed that industrial output was flat. In fact, core producer prices dropped by a monthly 0.6 per cent in October, after gaining just 0.1 per cent a month earlier.

In the labour market, initial jobless claims dropped to their lowest levels in two years last week, dropping by 2,000 claims to a total of 437,000. These latest figures continue to support claims that the job market in the US is slowly recovering. Meanwhile, the Philadelphia Federal Reserve Bank said its business activity Index rose to its highest level in almost a year in November, as it rose to a reading of 22.5 from a much weaker reading of one registered during the month.

An index of US leading indicators rose for a fourth consecutive month in October, as it gained 0.5 per cent after registering a similar increase a month earlier. In the housing market, confidence among homebuilders improved for a second month in November. The National Association of Home Builders confidence Index increased to a five-month high of 16 from a revised reading of 15 in October.

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.