Trading activity at the Malta Stock Exchange yesterday resulted in a negative outcome for the Index as it declined by a marginal 0.3 per cent to end the session at the 3,028 mark. Activity in the equity market increased from Monday's lows as investors swapped an aggregate of 21 deals spread over four different listings. While the third largest equity in terms of market capitalisation posted gains this did not suffice to support the Index which was pushed further down by the negative outcome from all other equities trading on the day.
Bank of Valletta was the day's sole gainer as the equity increased by 2c which equates to a 0.8 per cent rise to close at €2.67. The financial services company was also the day's most actively traded equity as investors transacted a total of 9,670 shares over 10 deals for a market consideration of €25,694.
FIMBank was the session's worst performer as the equity declined by 8c8 or 6.9 per cent to register new lows for the year as it closed at $1.182. Trading activity for the trade finance specialist was spread over two deals and a market value of $4,062.
Another dismal outing was registered by MaltaPost shares which depreciated by a further 1c1 or 1.7 per cent to close at €0.65, yet another low for the year. The postal operator was nevertheless the session's most liquid equity as investors swapped a total of 10,487 shares spread over seven transactions.
Simonds Farsons Cisk also ended the day in red as the equity shed 5c or 2.7 per cent to terminate at €1.80. Trading in the company's shares was spread over two deals and a value of €1,897.
In the fixed interest sector of the market, activity was spread over seven government stocks and six corporate bonds. The best performer among the government securities was the 7.8 per cent MGS 2018(I) which gained 102 ticks over a single deal to end the session at €123.78.
Weekly US economic review
Economic data emanating from the United States over the past week remained consistent with the theme of gradual economic improvement despite weaker data in industrial production. The uncertainty remains whether the momentum will stall or if the economy will start to grow in the second half of 2009.
Inflation declined to its lowest level in 60 years during May as it fell to -1.3 per cent compared to the same period last year as a result of falling oil prices which have declined sharply since peaking in July a year ago. Excluding oil and other volatile components 'core' inflation fell only slightly to 1.8 per cent. The data nevertheless soothed worries that massive spending by the US government may end up fuelling inflation. Also on a positive note, initial unemployment claims edged up in early June but retained a gradually downward trend as continuing claims registered the first drop since early January. Meanwhile industrial production fell by more than expected at 1.1 per cent month on month in May after a revised -0.7 per cent in the previous month with car output particularly weak. The April/May readings remained better than earlier drops, however, consistent with a gradual easing in the pace of manufacturing decline.
The US Philadelphia Fed Index, which is a regional Federal Reserve Bank index measuring changes in business growth, rose to -2.2 per cent for June from -22.6 the previous month, which was much stronger than expected and the highest reading in nine months.
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.