Financial news

The Malta Stock Exchange Index gained more than 14 points, or 0.4 per cent, yesterday, to end the day at the 3,872.871 level. Trading was robust as 198,456 shares were executed across 69 deals.

Shares in Malta International Airport plc put in the day’s best performance as investors pushed the stock price up 3c, or 1.7 per cent, to close at €1.810 on heavy volume of 79,040 shares across twelve trades. At the end of the day, the airport operator announced its operational forecasts for 2011 in which it predicted that passenger numbers for the year will be the same as those witnessed in 2010.The number of movements in 2010 registered a record 3.29 million passengers.

HSBC Bank Malta plc shares were also strongly higher in the session, gaining 4c, or 1.2 per cent, to end at €3.510, also on robust volume. A total of 69,139 shares exchanged hands across 28 deals. On Monday, HSBC stock gained 6c5, or 1.9 per cent, on relatively light volume of 6,325 shares across nine deals.

Bank of Valletta plc shares, meanwhile, closed marginally lower, dropping 0c5, or 0.2 per cent, to close at €3.145 on moderate volume of 20,157 shares across 20 trades.

Still in the financial services industry, Middlesea Insurance plc stock made slight gains, adding 0c8, or 0.8 per cent, and finished the day at €1.010, in light trading of 400 shares.

The other equity to see action yesterday was that of Go plc, which fell 0.6 per cent, or 1c1, to close at €1.929 in seven trades for a total of 29,720 shares.

Weekly US economic review

In the US, the week was relatively light in terms of economic data. Higher demand for exports and improving demand for business equipment are boosting demand in the manufacturing sector. As a result, the New York’s general economic index compiled by the Federal Reserve Bank rose to 11.9 in January from a downwardly revised reading of 9.9 the previous month.

A reading above zero of this index signals expansion in New York, northern New Jersey, and southern Connecticut. Economists were expecting the index to rise to 12.50.

In the housing sector, the number of homes that builders had began work came in fewer than expected in December. The number of housing starts fell by 4.3 per cent to a 529,000 annual rate during last month of 2010, the lowest level since October 2009. This is much worse than the 0.9 per cent decline which was expected by various economists and reversed the 3.8 per cent increase of housing starts in November.

However, the number of building permits registered an increase of 16.7 per cent during December, much higher than the 1.8 per cent expectations. This may, however have reflected an increase in the attempts to get approval for construction before changes in building codes took effect at the start of the new year.

On the same positive note, according to the National Association of Realtors the number of existing houses which were purchased during December increased to a 5.28 million annual rate, an increase of 12 per cent on the previous month. Finally, in the labour market, the number of people claiming for unemployment benefits for the first time fell by 37,000 to 404,000 during the week which ended on January 15.

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.