During the second day of trading on the Malta Stock Exchange, the index recovered some of the losses it registered during yesterday’s session, albeit increasing by just 0.06 per cent to close at 3,458.83 points.
Meanwhile, the day’s sole gainer was Middlesea Insurance, which recouped some of the losses it registered yesterday, as the equity gained 2c or 1.9 per cent to close at €1.05. Malta International Airport shares registered no change in price, closing unaltered at €1.56.
International Hotel Investments published the group’s half-yearly financial report for the period ended June 30. The group registered a pre-tax loss of €10.33 million, which is more than the €1.43 million loss registered over the same period a year earlier. The company explained that, during the first six months of 2010, the group’s activities were hampered by the continued difficult business environment. Meanwhile, revenues also dropped to €49.4 million in the first half of 2010 from €51.4 million registered over the same period of 2009.
Likewise, Medserv published its interim financial statement for the period from January 1 to June 30. The company registered a pre-tax profit of €147,753, which is much less than the €1,542,726 registered over the same period a year earlier. The group’s results in the first half of the year are lower than forecast and significantly lower than those achieved in the first six months of 2009, but turnover remained at the same levels of the comparative year-ago period. This was mainly due to the increased low-margin business registered during this year.
Weekly US economic review
The economic recovery in the United States was weaker than originally estimated in the second quarter, as the gross domestic product growth was revised down to only 1.6 per cent from its original reading of 2.4 per cent. Second quarter growth was dampened by the largest increase in imports in 26 years, but strong business investment growth and a slight increase in imports partially cushioned the blow. Many economists had predicted an even bigger downward revision to 1.4 per cent growth, but still most do not believe the economy will slide back into recession.
In the housing market, sales of existing houses plunged by a record 27 per cent in July as the effects of the government’s tax credit started to diminish. Purchases dropped to 3.83 million in July from 4.65 million a month earlier, the lowest in a decade of record keeping and worse than the most pessimistic of economists surveyed by Bloomberg. New home sales also slumped to their slowest pace on record in July, heightening fears that the economy was at risk of another downturn. In fact, single-family homes plummeted 12.4 per cent last month to a 276,000-unit annual rate, the lowest since records began in 1963.
Durable goods orders were also weak in July, registering just a 0.3 per cent increase, down from three per cent in June. Meanwhile, on a positive note, US consumer spending in July rose at the strongest pace in four months, supported by a small gain in incomes. The 0.4 per cent increase in spending was a relief after a spate of weak data for July.
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.