The Malta Stock Exchange index closed marginally higher yesterday, gaining less than one point, to finish at the 3,529.016 level. Trading was considerably lighter than the over 195,000 shares traded on Monday, when bank shares soared on the back of positive results from Bank of Valletta plc. Trading volume amounted to 87,640 shares which were spread across 69 deals.
The most active stock to trade in the session was, once again, that of Bank of Valletta plc. After surging more than 10 per cent on Monday, the shares in the retail bank shed 1c, or less than 0.1 per cent, to close at €3.699 in 49 deals for a total of 59,841 shares.
Also in the banking sector, Lombard Bank Malta plc, after gaining 20c yesterday, gained another 2c, or 0.7 per cent, to close at €2.770 in a single deal of 400 shares.
The other stock to trade higher was that of Maltapost plc, which was up marginally by 0c1, to close at €0.911 in a single deal of 2,115 shares.
But the stock to suffer on the day was that of Loqus Holdings plc, which dropped precipitously, shedding 14c, or 43.8 per cent, in a single deal of 1,424 shares, to close at €0.180. Loqus Holdings stock is known to trade in volatile intra-day ranges due to its lack of trading liquidity.
Other shares to trade in the session but which failed to register a change in their closing prices were Go plc, HSBC Bank Malta plc and International Hotel Investments plc, which closed at €1.870, €3 and €0.780 respectively, all on relatively light volume.
Weekly US economic review
In the US, real GDP rose at a two per cent annualised rate in the third quarter, up from a 1.7 per cent increase in the second quarter. This small acceleration was mainly attributed to a rise in consumer spending of 2.6 per cent, the fastest pace since the fourth quarter of 2006.
In the manufacturing sector, the headline durable goods data was stronger than expected with a 3.3 per cent gain for September, but the underlying figure excluding transport orders was weaker than expected with a 0.8 per cent monthly decline. Meanwhile, the Institute for Supply Management index for manufacturing also bet expectations in October, increasing to the highest level since May, edging up to a reading of 56.9 from 54.4 in September. This has alleviated some concerns regarding the expansion of the manufacturing sector which has slowed over the summer.
In the housing market, existing home sales rose to an annual rate of 4.53 million from a revised 4.12 million the previous month, while home sales rose to an annual rate of 307,000 from a revised 288,000.
A separate report showed that the number of people claiming unemployment benefits for the first time fell to 434,000 last week from a revised 455,000 previously.
Other data this week continued to reinforce expectations of more monetary stimulus from the Federal Reserve as consumer spending rose by less than expected 0.2 per cent in September, while income fell for the first time in 14 months by 0.1 per cent.
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.