Financial news

The Malta Stock Exchange Index fell just over 20 points, or 0.5 per cent yesterday, in relatively light volume of 77,785 shares across 36 deals. Yet trading was volatile as four of the five equities to trade in the session moved more than a single percentage point in closing.

HSBC Bank Malta plc shares, which have been one of the top market performers of late, fell victim to investor profit-taking yesterday and fell 6c8, or 1.9 per cent, to close at €3.460. Trading was light as only 3,750 shares changed hands across three deals.

Bank of Valletta plc shares, meanwhile, made a marginal gain in the session, adding 1c, or 0.3 per cent, to close at €3.150 in continued robust volume of 24,635 shares across 20 deals.

Plaza Centres Plc shares suffered the day’s biggest loss, plummeting 11.2 per cent, in light volume of 4,000 shares, across three deals, to close at €1.500.

Also closing lower were the shares of RS2 Software plc, which fell 1c, or 2.2 per cent, to end at €0.450 in two deals for a total of 600 shares.

The other equity to trade in the session was that of Malta International Airport plc, which added 3c, or 1.8 per cent, to close at €1.700 in relatively heavy volume of 44,800 shares across eight deals.

Trading in the corporate bond market finished lower as five of the eight issues to trade on the day closed lower while the remainder closed unchanged. Volume remained rather anaemic as only €122,600 nominal changed hands across 16 deals.

Weekly US economic review

In the US, inflation as measured by the Consumer Price Index (CPI) rose by 0.5 per cent during the last month of the year, higher than the expected 0.4 per cent. The rise in cost of living in America was led by higher fuel and food prices, however, the value of other goods and services registered the smallest annual increase on record. Excluding the volatile food and energy, the so-called core prices increased by 0.1 per cent in December, the same rate as last month and in line with expectations.

Meanwhile, a separate report showed that economic data from the retail and the manufacturing sector ended the year on a positive note. Sales in the retail sector registered an increase of 0.6 per cent in December, the biggest annual increase in more than 10 years, however, this was lower than the 0.8 per cent which had been expected. Sales excluding autos and gas registered an increase of 0.4 per cent, higher than the 0.3 per cent which was expected. Meanwhile, production in the industrial sector which includes output at factories, mines and utilities increased by 0.8 per cent in December, the most in five months, after registering a downwardly revised gain of 0.3 per cent the previous month.

In the external sector, the trade deficit in America shrank unexpectedly to $38.3 billion in November from a downwardly revised deficit of $38.4 billion in the previous month. This was due to an increase in global demand and a weaker currency which has helped to increase exports. Economists were expecting the deficit to rise to $40.5 billion.

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.