Trading activity for yesterday's session on the Malta Stock Exchange ended on a negative note as the Index dropped by 0.2 per cent to close at the 3,555.59 level.
Simonds Farsons Cisk headed the list of gainers during the day as the equity rose by 5c or 2.8 per cent to terminate at €1.85. Investors in the company transacted a total of 9,886 shares across four deals for a market consideration of €18,414.
Middlesea Insurance and Medserv also ended the session in positive territory as their share price rose by 0c2 and 3c to close at €0.88 and €4.28 respectively.
On the contrary, Bank of Valletta shares ended the day in the red as the equity dropped by 2c or 0.6 per cent to terminate at the €3.37 level.
Meanwhile, HSBC Bank Malta shares also depreciated during the session as its price dropped by 1c or 0.3 per cent to close at €3.05.
The day's worst performer was San Tumas Shareholding as its shares dropped by 10c which equates to a decline of 3.8 per cent to close at €2.50. Two investors exchanged an aggregate of 3,000 shares. Elsewhere, Maltapost shares dropped by 3c or 3.3 per cent to close at €0.87.
Malta International Airport and International Hotel Investments ended the session without any movement in price to close at €3.15 and €0.85 respectively. Likewise, RS2 Software was also a non-mover during the day, terminating unaltered at €0.513.
Lombard Bank Malta published its interim directors' statement for the period January 1, 2010 to May 24, 2010. The bank said that loans and advances to customers remained at similar levels to those registered in 2009. It also stated that, notwithstanding the outlook for the euro area remains turbulent and uncertain, the directors are confident that the performance of the bank will remain on course towards the attainment of the profitability figures forecast for the half-year term.
Weekly US economic review
The cost of living in the United States unexpectedly dropped in April for the first time in more than a year, signalling the world's largest economy is recovering without causing prices to flare. This was pulled down by declining energy costs. In fact, excluding food and fuel, the so-called core rate was unchanged, capping the smallest 12-month gain in four decades. Meanwhile, producer prices fell for the second time in the last three months. The Producer Price Index (PPI) fell by 0.1 per cent in April after increasing 0.7 per cent the previous month. Since inflation pressures are muted, this will allow the US Federal Reserve to focus on measures supporting growth.
In the real estate market, sales of existing homes rose 7.6 per cent in April to a seasonally adjusted annual rate of 5.77 million as buyers rushed to complete sales before the expiration of a tax credit at the end of April. This was much more than expected and the highest level in five months. Also on a positive note, new housing starts in April rose to the highest level since October 2008, to a reading of 672,000 units. In fact, on a monthly basis, new home sales rose 5.8 per cent in April after an upwardly revised 5.0 per cent increase the previous month. However, a drop in building permits to a six-month low may suggest that the recovery in the housing market may struggle without the government incentive.
Finally, data releases in the labour market suggest that the recovery in this sector may hit a speedy bump, since initial jobless claims rose to a reading of 471,000 claims in the week ending May 15. This is much higher than the 446,000 claims reported the previous week.
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.