Financial news

The Malta Stock Exchange Index dropped just over six points, or 0.2 per cent yesterday, in relatively brisk trading of 157,657 shares across 41 deals. Banking shares continued to make up the lion’s share of trading as 143,018 shares exchanged hands in just two of the large banking stocks as the index ended the session at 3,762.834.

HSBC Bank Malta plc shares, in heavy volume of 109,000 shares, fell 1c1, or 0.3 per cent, to close at €3.189. Yesterday’s loss comes after losing 5c5 in Monday’s session.

Bank of Valletta plc shares, meanwhile, also finished lower, closing down 1c8, or 0.5 per cent, to close at €3.870 in 26 deals for a total of 34,018 shares. Yesterday’s loss represents a pullback from BOV’s recent share price movement. On Monday, BOV’s stock gained 3c in brisk volume of 20 deals across 19,751 shares.

Closing in positive territory was the stock of Island Hotels Group Holdings plc, which added 4c, or 4.2 per cent, on volume of 5,000 shares across two deals, and closed at €0.990.

Other shares to trade during the session included Malta International Airport plc, which closed unchanged at €1.660, in two trades for a total of 6,000 shares.

Maltapost plc shares also traded during the day yet closed unchanged after opening 2c lower in its initial trade. The stock managed to climb back late in the session after an investor stepped in and closed the stock at €1.000.

Weekly US economic review

In the United States, the positive economic data from the job market and manufacturing sector has supported the view that the economy gained momentum at the end of last year. The manufacturing sector in December grew at the fastest pace in seven months mainly driven by increased orders from factories. The Institute for Supply Management (ISM) index came in on top of market expectations, improving to 57 in December from 56.6 the previous month, consistent with solid and ongoing growth in the manufacturing sector.

In the labour market, the initial jobless claims for the week which ended on December 25 fell by 34,000 to 388,000 claims. This is lower than the 415,000 claims which was expected by various economists and it is the lowest level since July 2008. Furthermore, a four-week average of new jobless claims, which is a better measure of underlying trends, also fell to its lowest level since July 2008.

On a negative note, housing data showed that the market continued to struggle since the expiry of the home-buyer tax credit in 2010. According to the Standard & Poor/Case-Schiller composite index, prices of single-family homes fell one per cent in October, on a seasonal basis, much steeper than the 0.6 per cent increase which was expected. Meanwhile, construction spending increased 0.4 per cent in November, lower than the 0.7 per cent expansion the sector registered during the previous month, but double the rate of market expectations. Finally, a gauge of consumer confidence deteriorated unexpectedly to a reading of 52.5 in December, from 54.3 of the previous month, as consumers were concerned about the jobs market. Economists were expecting this measure to increase to 56.3.

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.