The Malta Stock Exchange, although closing seven points, or 0.2 per cent higher yesterday, lacked investor support as only two of the six equities to trade in the session finished higher, while the remainder closed unchanged.
The one stock to rally strongly was Malta International Airport plc, whose shares gained 5c, or 3.1 per cent, to finish at €1.650 in eight deals for a total of 8,292 shares.
The other stock to also finish in positive territory was that of Bank of Valletta plc, whose shares rose 1c, or 0.3 per cent, on moderate volume of 9,948 shares across 11 deals, to close at €3.280.
Shares in the other major bank, HSBC Bank Malta plc, meanwhile, closed unchanged at €2.795 in 11 deals for a total of 15,848 shares.
In the tourism sector, shares in International Hotel Investments plc, ended the day unchanged at €0.80 on trading volume of 14,500 shares across three deals.
Shares of Malta’s postal operator, Maltapost plc, also finished unchanged, at €0.92, in four deals for a total of 4,312 shares. At the end of the session, the best unsatisfied bid stood at €0.92 for 6,059 shares while no offers were placed on the market.
The other equity to trade in the session, Middlesea Insurance plc, also finished unchanged at €1 in a single deal of 2,024 shares.
Weekly US economic review
In the United States, the data this week continued to show a slow-growth picture for the economy, reinforcing the views of further monetary easing next month by the Federal Reserve, to boost the recovery.
On a positive note, the lower mortgage rates on record and cheaper homes are enticing some buyers and providing a backstop for the industry that precipitated the worst recession since the 1930s. In fact, sales of existing homes increased by 10 per cent to 4.53 million annual rate, the most on record during September, up from 4.12 million in August. However, the increasing levels of foreclosure and a higher unemployment rate is expected to slow the recovery in the housing market. In fact, data from the labour market showed that claims for jobless aid was marginally changed for most of this year and are holding below a nine-month high seen in mid-August. The number of people still receiving benefits, after an initial week of aid fell 9,000 to 4.44 million in the week ended October 9, the lowest level since the week ending June 26.
In a separate report, the Philadelphia Federal Reserve Bank Index rose to a reading of 1.0 in October from -0.7 in September. Although this shows that factory activity in the mid-Atlantic region has picked up a little, since a reading above zero indicates expansion, this reading is below economists’ forecast of a gain to 2.0.
Finally, a measure of consumer confidence continued to deteriorate to a reading of -46 in the week which ended October 17, from a reading of a -45 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.