Financial news

The Malta Stock Exchange Index put in another solid performance yesterday, climbing 35 points, or 0.9 per cent, on the back of banking shares which continued to climb higher. The index closed at the 3,775.801 level in 43 trades for a total of 68,146 shares.

HSBC Bank Malta plc shares propelled themselves higher yet again yesterday, adding 8c, or 2.5 per cent, to close at €3.350 on volume of 35,680 shares across 14 deals. On Monday, HSBC shares were up 7c, while last Friday’s session witnessed the stock climb 4c.

Bank of Valletta plc stock, after trading ex-bonus-share on Monday, gained 2c4, or 0.8 per cent on the day, to close at €3.145 on volume of 23,167 shares across 23 deals.

Shares in the local airport operator, Malta International Airport plc, were also up in the session, adding 1c, or 0.6 per cent, to close at €1.660 in a single deal of 1,400 shares.

Finishing in negative territory were the shares of Loqus Holdings plc, which fell 1c, or 6.3 per cent, and ended at €0.150, also in a single deal of 1,212 shares.

Other equities to trade during the session, yet finished unchanged, were Lombard Bank plc, Middlesea Insurance plc, and Maltapost plc, which closed at €2.780, €1.000 and €1.000, respectively, all on light volume.

Trading in the corporate bond market was relatively light as an equivalent of €227,885 nominal across 30 deals was executed. Trading was positive as five of the12 issues to trade during the session finished higher, while the remainder finished unchanged.

Weekly US economic review

In the US manufacturing sector, the number of orders with factories unexpectedly increased during November by 0.7 per cent. As a result this has reversed the revised 0.7 per cent decline which was registered during the previous month. This increase was mainly led by gains in demand for capital goods. Economists were expecting factory orders to decline by 0.1 per cent in November. Meanwhile, data from the services sector also shows that the industry grew at the fastest pace since May 2006 in December. The Institute for Supply Management (ISM) index for the non-factory index increased to 57.1 from 55.0 the previous month. Economists expected this index to expand to 55.7.

In the labour market, the American economy added a less-than-expected 103,000 jobs in the final month of last year. This increase, although higher than the 71,000 gain which was registered the previous month, was lower than the median economists forecast of 150,000.

However, according to the Labour Department, the nation’s unemployment rate fell to 9.4 per cent in December, the lowest level in a year and a half, from 9.8 per cent the previous month. This was also the biggest one-month drop since April 1998. However, half of the decrease stemmed from people dropping out of the labour force, as the number of people officially classified as unemployed fell to 14.5 million from 15 million, during the final month of last year.

Finally, the amount of consumer borrowing in the US increased by $1.3 billion in November, after increasing a revised $7 billion in October. This was the second consecutive increase and was led mainly by an increase in non-revolving credit such as auto financing and education-related lending.

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.