Investors remained largely on the sidelines yesterday as the Malta Stock Exchange witnessed light action. Only 29,115 shares were traded across 19 deals in just three equities, to see the MSE index close at 3,588.326, down 0.4 per cent.
The big mover in the session was the stock of 6pm Holdings plc, which fell 7p, or 13.2 per cent in characteristically low volume of 1,180 shares in a single deal.
The bulk of trading was executed in the shares of HCBC Bank Malta plc, which fell 3c8, or 1.3 per cent, to close at €2.931 in thirteen deals for a total of 16,935 shares.
The other equity to trade in the session closed unchanged in five deals for a total of 11,000 shares as stock of the local airport operator, Malta International Airport plc, closed at €1.750.
Corporate bond trading continued its downward trend yesterday, as investors remained apprehensive ahead of further developments in Libya and the surrounding regions. Seven of the 14 bonds to trade in the session closed lower while the remainder ended unchanged. The 6.25% International Hotel Investments Plc € 2017 – 2020 suffered the day’s biggest loss, dropping €2.000 or 2.2 per cent, to close at €90.000 in two deals for a total of €19,900 nominal. Other bonds to close lower include the 7.15% Mediterranean Investments Holding plc Euro 2015-2017 and the 7.5% Mediterranean Investments Holding plc EUR 2012-2014 issue, as each ended €1.000, or 1.1 per cent lower, while each issue closed at €89.000.
Weekly US economic review
New US claims for jobless aid fell last week, indicating healing in the US labour market, but declines in new homes sales showed the recovery remains uneven.
Initial claims for state unemployment insurance benefits dropped by 22,000 to a seasonally adjusted 391,000, the labour Department said on Thursday, falling below the 400,000 expected by economists. The recovery has been slow by historical standards as the unemployment rate remains at nine per cent. New home sales in January, meanwhile, showed a 12.6 per cent decrease over the month of December. January’s figures were pulled down by a 36.5 per cent plunge in home sales figures in the west, after spiking 62.5 per cent the prior month.
Gross domestic product figures for the fourth quarter of 2010, which were released on Friday, showed that the American economy grew at an annualised rate of 2.8 per cent, 0.5 per cent less than economists had forecasted. Analysts blame the softer than expected numbers on the harsh winter weather experienced in December as well softer-than-expected consumer spending and higher oil prices.
Overall durable goods orders for the month of January were also released last week, showing a 2.7 rise over the month of December, representing the largest increase since September, after falling 0.4 per cent the prior month. The rise was driven by a 4,900 per cent surge in aircraft bookings, which reflected December orders from Boeing that had not been fully captured in the report for the month. Outside transportation, however, there were big declines in orders for machinery, computers and communications equipment.
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.