Financial news

The Malta Stock Exchange Index gained almost 20 points, or 0.6 per cent in the first session after the festive long weekend, to close at the 3,524.530 level in very brisk trading of 177,558 shares across 60 deals.

In the banking sector, HSBC Bank Malta plc shares gained 0c9, or 3.0 per cent, on robust volume of 37,190 shares across 17 deals, and closed at €3.020.

Other banking stocks, such as Bank of Valletta plc, FIMBank plc, and Lombard Bank plc, all closed unchanged at €3.770, US$0.940 and €2.570, respectively.

The stock registering the largest move in the day was that of Loqus Holdings plc, which gained 11.1 per cent, or 2c, closing at €0.200, in a single, small deal of 300 shares.

Trading in negative territory was the stock of RS2 Software plc, which lost 2c, or four per cent, in three trades for a total of 5,000 shares, to end the day at €0.480.

Also closing lower were the shares of Island Hotels Group Holdings plc, which fell by 5c, or 5.3 per cent, finishing the day at €0.899 in a single trade of 1000 shares.

International Hotel Investments plc, meanwhile, fell marginally, shedding 1c, or 1.3 per cent, to close at €0.740 on volume of 20,000 shares across two deals.

Investors also sold shares in the local telecommunications provider, Go plc, as the stock closed 2c, or one per cent lower, to end the day at €1.92 in light volume of 2,100 shares across two deals.

Rounding out the day’s trading were the shares of Malta International Airport plc, which closed unchanged at €1.65 on volume of 14,469 shares across six deals.

Weekly US economic review

In the US, retail sales increased more than expected during November by 0.8 per cent. This was the fifth straight monthly increase and was much higher than the 0.6 per cent increase which was expected by various economists. In the meantime, the previous month sales were revised up to a gain of 1.7 per cent from a previous reading of 1.2 per cent. Excluding automobile, sales rose 1.2 per cent in November, twice as much as forecast and the largest gain since March.

This was also higher than the 0.6 per cent gain which was registered during the previous month. According to the report consumers also spent on non-essential goods such as sporting goods, hobby, book and music stores, which registered the biggest gain in almost a year.

A separate report showed that inflation pressure in the US continued to increase. An indicator measuring producer prices increased by 0.8 per cent in November, higher than the 0.4 per cent increase of the previous month.

Meanwhile, core wholesale prices, which excludes volatile food and energy prices rose 0.3 per cent in the same month, after declining 0.6 per cent in October.

Meanwhile, the trade deficit in the US shrank more than forecast in October. This was helped by a weaker dollar and a higher demand from other economies which boosted the level of exports to a two-year high. The trade gap narrowed by 13 per cent to $38.7 billion, better than the $43.8 billion deficit which was expected by various economists.

Finally, a consumer confidence indicator as measured by the University of Michigan rose to a six-month-high level of 74.2 in December, from 71.6 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.