In yesterday's session at the Malta Stock Exchange, selling pressures in the two largest listed companies by market capitalisation were the main drag on the MSE Index, as gains registered in two relatively smaller equities were not enough to see the index higher. The MSE Index lost 0.69 per cent to end the day at 3,447 points. The day's trading consisted of 38 deals spread over seven different equities, with an aggregate value of €277,074.
Simonds Farsons Cisk's share price closed higher when two investors swapped 500 shares at €2.65, which represents a gain of 1.92 per cent over its previous closing price.
Trading activity in Lombard Bank was higher than the norm, with 21,294 shares dealt over seven deals which pushed the price higher by three cents or 1.01 per cent to close at €3.
On the other hand HSBC Bank Malta suffered a decline of 1.72 per cent, down to €2.85 on a turnover of 13,150 shares across eight transactions.
By far the highest turnover was registered in International Hotel Investments when 98,710 shares were exchanged over three deals at a discount of 1c over its earlier price to end the day at €0.97.
During the session Bank of Valletta traded at a daily low of €3.54,9 only to recoup part of the early losses late in the session and subsequently close at €3.59 which represents a decline of one cent.
Trades executed in Go and Santumas Shareholding with low volumes of 400 and 477 shares respectively failed to steer any change in prices.
In the fixed interest sector of the market, activity was spread across seven corporate bonds and two government stocks. The 7.8 per cent MGS 2018 attracted the highest turnover, with 150,000 nominal while registering a price decrease of 1.1 per cent to close at €121.83. An increase in price was registered in the 4.6 per cent HSBC Bank Malta 2017 where 10,000 nominal were swapped over two transactions, pushing the price up to close at €96.50.
US economic review - weekly round-up
Financial markets' distress intensified this week despite a coordinated rate cut among global central banks and further policy initiatives. Federal Reserve Chairman Ben Bernanke pushed for the broadest coordinated interest rate cut in history. The Fed announced plans to purchase commercial paper directly from issuers and the Treasury department is considering direct capital injections in the US financial service sector. The Commercial Paper market was practically shut down as investors panicked and piled heavily into the short term treasury market, while shunning other forms of short-term credit. Market participants are now pricing in further rate cuts by the Fed to boost liquidity and shore up confidence. Traditionally, the monthly consumer credit series does not elicit much market or analyst commentary, but the August decline, which was reported last week, was very disconcerting in light of market developments in September and so far in October.
Consumer credit declined by $7.9 billion in August, the largest monthly decline on record, after rising by $5.2 billion in July and after having increased in every month since January 1998. Consumer credit is comprised of two components: revolving and non-revolving credit. The August decline was concentrated on the latter that is, car loans and other loans not secured by real estate.
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.