The Malta Stock Exchange Index dropped just over 11 points to close at 3,356.894 on volume of 126,928 shares across 46 deals. Banking shares, after having a positive performance on Monday, pulled back somewhat in moderate volume yesterday.
HSBC Bank Malta plc shed 4c, or 1.3 per cent yesterday, to close at €3.000 in six trades for a total of 27,823 shares.
Lombard Bank Plc was also lower on the day, shedding 1c5, or 0.5 per cent, to end the day at €2.935 in three deals for a total of 1,000 shares.
Managing to buck the negative trend were the shares of Bank of Valletta plc, which closed unchanged at €2.890 on volume of 32,065 shares across 18 trades.
Having the best performance for the second consecutive session were the shares of Middlesea Insurance plc, which added 2c, or 2.2 per cent, to end at €0.950 in two trades for a total of 3,840 shares. Late in the day on Friday, Middlesea announced that its board of directors had been informed that an agreement had been reached between Mapfre Internacional and Munich Re – two institutional shareholders of the local insurance company’s shares – in which Mapfre will be acquiring Munich Re’s current 19.9 per cent shareholding in Middlesea, subject to certain regulatory approvals. If concluded, the agreement will see Mapfre increase its aggregate shareholding in Middlesea to 50.98 per cent.
Go plc shares, meanwhile, stopped the losses suffered in recent session and managed a marginal gain of 0c9, or 0.7 per cent, to finish at €1.339 in robust volume of 39,700 shares across 13 trades. Finally, RS2 Software plc shares saw relatively heavy action yesterday as 22,500 shares changed hands across four trades and closed at €0.500.
Weekly US economic review
Last week, data released in the US showed new orders for durable goods rose more than expected in March while bookings for the prior month were stronger than initially thought, indicating that the American manufacturing sector continues to gain strength. Monthly orders were up 2.5 per cent for March over February while analysts expected a 2.3 per cent rise.
February’s figure, meanwhile, was revised upwards, to 0.7 per cent, versus a previously reported 0.9 per cent decline. Excluding transportation, durable goods orders rose by 1.3 per cent for the month.
Also released last week were the US’s quarterly Gross Domestic Product (GDP) figures which showed that for the first three months of 2011, growth of the US economy slowed to an annual rate of 1.8 per cent, versus 3.1 per cent for the fourth quarter of 2010. Economists were expecting growth of 2.0 per cent. Much of the slowdown in GDP growth was attributable to cuts in defence spending.
Business for US manufacturers grew at a slower pace for the second time in as many months in April but their costs rose to the highest level in nearly three years. The Institute for Supply Management’s manufacturing index eased to 60.4 in April from 61.2 in March, slightly higher than the 59.5 economists were expecting. The index for prices paid rose to 85.5 from 85.0, the highest level since July 2008. The recent sharp decline in the US dollar is seen as helping the export-heavy sector.
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.