Financial news

The MSE Index gained 0.5 per cent to 3,777 points during yesterday's trading session at the Malta Stock Exchange, induced higher by gains in the two largest listed banking sector components. Trading activity was mild throughout the session with 36 deals being struck in the local equity market for a total consideration of €251,419.

Bank of Valletta was the day's most active and liquid equity as buying activity saw investors clear 40,308 shares off the offer side over 19 transactions pushing the price higher by 10c or 2.39 per cent in the process, to finally close at €4.28.

RS2 Software traded at its highest registered level to date of €0.83 since its listing on the local exchange. Yesterday session saw an appreciation of 2.47 per cent. Turnover here consisted of four deals amounting to 31,000 shares which were executed in rapid succession in early trading.

Activity in HSBC Bank Malta to the tune of 10,800 shares caused a slight rise of 0.27 per cent to end the session at €3.011, however current best bids signalled further buying interest for 13,000 shares at a higher price of €3.02.

Crimsonwing closed lower by 3.85 per cent as 16,800 shares, carrying a market consideration of €8,400 were sold across three trades, all trades executed at €0.50.

International Hotel Investments dealt in unchanged territory, with the price trading at the €1.05 level. Meanwhile, activity in Maltapost of 2,199 shares failed to steer any moves, as the equity closed unaltered at €0.75.

In the fixed interest sector of the market, activity was spread across six corporate bonds and four government stocks with the five per cent MGS 2021 attracting the highest turnover of over nine million nominal, while the 6.15 per cent Bank of Valletta 2010 registered the biggest percentage gain of 1.08 per cent moving higher to close at €101.08.

Weekly UK economic review

In a rather uneventful week, the minutes for the last Bank of England (BOE) Monetary Policy Committee (MPC) meeting stole much of the limelight as the decisions taken by Bank's policy makers were released yesterday.

Members of the MPC were once again split in three ways in arriving to the final decision of leaving interest rates unchanged at five per cent.

BOE Governor, Mervyn King and six other members of the MPC voted to keep rates on hold.

Timothy Besley voted for a rate increase, arguing that a "pre-emptive" move would help in lowering inflationary expectations.

David Blanchflower lived up to everyone's expectations as he voted once again for a rate cut signaling the need to help economic growth.

The minutes stated that "the outlook for activity growth had continued to worsen, but some build up in the margin of spare capacity was likely to be necessary to ensure that inflation returned to the target.

Meanwhile, UK house prices posted the biggest annual decline since at least 2002 as banks chocked off mortgage lending according to Rightmove Plc, Rightmove holds the most-used property website.

The average asking price for a home fell 4.8 per cent in August from a year earlier to £229,816.

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.