During yesterday's trading session at the Malta Stock Exchange, investors focused their attention on the fixed interest market shifting positions and trading yields in view of the issue of two fungible stock tranches by the Malta government.
Bank of Valletta was the day's most liquid and actively traded equity, with a total of 7,201 shares, carrying a market consideration of €26,255, and changing hands across 10 transactions. The equity commenced trading lower midway through the session and terminated at €3.60, the lowest level of the day, representing a discount of 10c or 2.7 per cent under Friday's close. The Bank is due to report its full year results and dividend declaration on October 31.
HSBC Bank Malta attracted four trades in its equity for an aggregate 5,103 shares changing hands across four transactions without altering their previous closing price of €3.00.
At the end of the session, 3,890 shares were best bid at €2.95, while a further 3,829 shares remained unfilled at the €3.00 level on the offer side.
Similarly, Go and Maltapost closed the day unchanged at €2.10 and €0.818 respectively, with intra-day trades in both company being executed at a slightly lower price.
The day's main focus, however, was in the fixed interest market where six corporate bonds and two government stocks attracted trade. The 5.90% HSBC Bank Malta 2018 gained a further 50 ticks to trade at €103.50, while the 6.70% Eden Finance 2010 and the 6.00% Dolmen Properties 2010/12 dropped the same amount of ticks to close at €98.50 and €99.50 respectively.
Two deals were struck in a corresponding number of Government Stocks, with the 4.80% MGS 2016 moving higher by 50c to the €100.19 level and the 6.35% MGS 2013 gaining 55c to terminate at €107.61.
The MSE Index closed the day weaker by 0.5 per cent at 3,502 points.
US economic review - weekly round-up
Economic data issued during the last week continued to point to further deterioration in the US economic growth outlook. On a more positive note Consumer Price Inflation (CPI) showed hints of disinflation.
Headline CPI came in at 4.9 per cent down from 5.4 per cent in August. The predominant factor weighing on the headline has been the decline in energy prices since July.
Energy prices fell 1.9 per cent; prices would have fallen even more sharply had it not been for supply disruptions following the hurricanes. The other major driver of headline inflation, food prices, continued to push higher although it is likely to cool off due to a decline in the energy prices and transportation costs.
September retail sales were much softer than expected. Headline sales declined 1.2 per cent while July and August sales were each revised down 0.1 per cent to -0.6 per cent and -0.4 per cent respectively.
Meanwhile, last Friday's housing starts fell 55k to 820k, their lowest level since the start of 1991. The recent rise in mortgage rates and tighter credit standards are likely to further undermine an already frail level of demand for housing market.
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.