The Malta Stock Exchange was exceptionally quiet yesterday, as five equities saw trading in the market, on total volume of 51,717 shares. The index lost seven points to close at the 3477.286 level.
HSBC Bank Malta plc shares were down 2c, or 0.7 per cent, to close at €2.98, falling below the €3.00 level, as 18,200 shares exchanged hands across 10 deals. The best unsatisfied bid at the end of the day stood at €2.90 for 1,000 shares while the best unsatisfied offer stood at €2.975 for 5,000 shares.
The only other issuer to see trading in its stock yesterday and register a change in the closing price was Middlesea Insurance plc. Shares in the Floriana-based insurer managed a marginal gain of 0c5, or 0.6 per cent, to close at €0.86 in a single trade of 8,600 shares.
Bank of Valletta plc, meanwhile, closed unchanged at €3.28 in 18 trades totalling 18,917 shares.
Other stocks to trade on the day yet close unchanged were International Hotel Investments plc which ended at €0.825 in a single trade of 5,000 shares and Go plc, which finished at €2.075, in two trades of 1,000 shares.
The fixed income market remained in the doldrums yesterday as €175,004 nominal were exchanged across 21 deals as seven corporate bond issues and four government stocks were traded during the session. The 6.20 per cent Mizzi Organisation Finance 2016-2019 series made the biggest move on the day, losing €1.00, or 1.0 per cent, to close at €101.00 in two trades of €13,700 nominal.
Weekly US economic review
The US economy grew at a three per cent pace in the first quarter, lower than the 3.2 per cent which was previously reported. This revision was mainly attributed to a smaller increase in both consumer spending and investment in business software. On a positive note, durable goods orders surged 2.9 per cent in April on tripling aircraft orders, to register the fourth gain in five months.
In fact, non-defence aircraft orders jumped 228 per cent. Excluding volatile transport orders, the so-called core orders declined by one per cent in April. The strong cyclical rebound in manufacturing should cushion the US economy somewhat against possible negative effects from the recent bout of risk aversion.
In the labour market, the number of people applying for unemployment benefits fell 14,000 to a seasonally adjusted 460,000 in the week ended May 22. Meanwhile, consumer spending stalled for the month of April after rising 0.6 per cent the previous month. Purchases did not increase for the first time since September 2009. On the other hand, personal income increased by 0.4 per cent for the second consecutive month in April, while the savings rate rose for the first time in four months.
Meanwhile, real disposable income, that is, income adjusted for taxation, rose 0.5 per cent in April. This was the largest increase since May, after an increase of 0.3 per cent registered the prior month.
Finally, according to the University of Michigan Consumer Confidence index, consumer sentiment rose slightly to a reading of 73.6 in May from an upwardly revised reading of 73.3 the previous month.
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.