Financial news

The Malta Stock Exchange Index added almost eight points on Tuesday, increasing by 0.2 per cent, to close at the 3,532.362 level. Volume was relatively light as much of the day’s activity was focused around three equities. A total of 56,866 shares in 40 deals were executed across five equities.

Bank of Valletta plc shares were the most active issue in the session, as 25 trades for a total of 26,706 shares changed hands. BOV’s shares, which have been on the rise of late, closed unchanged at €3.770.

HSBC Bank Malta plc shares, meanwhile, added another 2c, or 0.7 per cent on the day, to close at €3.040, on relatively light volume of 12,000 shares across four deals.

The other issue to make gains in the day was that of Simonds Farsons Cisk plc, which rose 2c, or 1.2 per cent, to close at €1.720, in six trades for a total of 12,133 shares.

Other equities to trade yet in the session, failed to register a change in their closing prices, were Lombard Bank plc and Go plc, which closed at €2.570 and €1.900, respectively, both in light trading.

Trading in the corporate bond market continued to be light as an equivalent of €102,949 nominal across 22 deals were executed. The 4.25% FIMBank plc EUR 2013 bond managed to gain €0.55, or 0.5 per cent, to end the day at €101.50 in four deals for a total of €26,000 nominal.

Weekly eurozone economic review

In the United States, 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 percent 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.