The Malta Stock Exchange Index fell by just over nine points yesterday as investors made an about face and sold shares of banking stocks after last Monday’s gain in shares of the financial sector. The index closed at the 3,304.660 level, a 0.3 per cent loss over the previous session’s close.
Bank of Valletta plc, after gaining 4c on Monday, shed all but 0c5 of those gains and dropped 3c5, or 1.2 per cent, to close at €2.805 in twelve deals for a total of 10,480 shares.
HSBC Bank Malta plc shares were also lower yesterday, shedding 1c, or 0.3 per cent, to finish at €2.940 on modest volume of 10,700 shares across nine trades.
Finishing on the upside were the shares of Middlesea Insurance plc, which added 1c3, or 1.3 per cent, and closed at €1.003 in four deals for a total of 5,846 shares.
Middlesea’s shares have been trading aggressively higher in recent sessions. On Monday, the shares of the local insurance provider gained 3c, or 3.2 per cent in four trades for a total of 4,985 shares.
Malta International Airport plc stock was also higher yesterday, adding 3c, or 1.8 per cent, to end the day at €1.680 in three deals for a total 8,900 shares.
Also trading yesterday, yet finishing unchanged were the shares of Go plc, and RS2 Software plc, which closed out the session at €1.290 and €0.500, respectively, on volume of 5,400 shares and 10,000 shares, respectively.
Weekly US economic review
US factory orders surged for the month of March, increasing by three per cent over last February’s revised figure of a 0.7 per cent increase. March’s figure, which equated to a seasonally adjusted $463 billion, was a full percentage point higher than analyst’s expectations and represents the fifth straight monthly increase for orders. A cheaper US dollar has helped export industries and there are signs that manufacturers and increasing investment in plants and equipment in anticipation of increased future orders. Orders for durable goods, items designed to last three years or more, were up a revised 2.9 per cent for the month of March.
The non-manufacturing sector of the US economy, meanwhile, slumped in April as the Institute for Supply Management’s non-manufacturing index registered a drop of 52.8 for the month versus 57.3 for March. A reading above 50 indicates expansion in the sector. March’s figure was considerably lower than economists’ expectations of 57.5, as market participants believe rapidly rising food and energy prices negatively impacted the retail sector.
The private sector generated the most jobs in April since February 2006, but the jobless rate jumped back up to nine per cent from March’s figure of 8.8 per cent. The US non-farm payroll figure expanded by 244,000 jobs for the month, which was well above forecasts of 185,000 and was the highest reading in 11 months.The increase in the jobless rate back up to nine per cent surprised forecasters, who were anticipating a steady reading of 8.8 per cent.
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.