Financial news

During a relatively uneventful mid-week session at the Malta Stock Exchange, the MSE Index closed lower by just over one per cent to close at 3,683 points. HSBC Bank Malta acted as the main catalyst as the index's largest component lost 3.54 per cent during the session. Activity was spread over five listings, with a total of 23 trades executed over an aggregate turnover of €49,012.

HSBC Bank Malta was the most active and liquid traded component with 12,500 shares dealt over 18 transactions with an intra day high of €3.021. Selling pressures forced the price lower by 11c close at the intra day low of €3.

A deal in Bank of Valletta towards the closing bell to the tune of 1,000 shares lowered the price by a mere two tenths of a cent to end the day at €3.99c8.

MaltaPost shares were the only gainer on the day as the postal services company shares inched higher by one cent or 1.22 per cent to close at €0.83 as two investors swapped a mere 233 shares. A single trade in Crimsonwing for 1,249 shares was filled at the last closing price of €0.50, whilst GO was also a non-mover, with 2 trades of 3,000 shares being matched at €2.20.

Simonds Farsons Cisk issued its interim report for the six months ending July 31 this year, where it was reported that Group turnover increased by 4.6 per cent to €35.3 million and gross profit margin decreased from 23.4 per cent to 21.5 per cent for a operating profit of €2.01 million. The board of directors recommended a net interim dividend of €0.0078 per share.

In the fixed interest sector of the market, activity was spread across two corporate bonds and five government stocks. The 5% MGS 2021 attracted the highest turnover, with 47,879 nominal whilst registering a price decrease of 0.06 per cent to close at €100.37. A decrease was also observed in the 4.6% HSBC Bank Malta 2017 when a mere 4,500 nominal were swapped over a single transaction, pushing the price down by 2.59 per cent to close at €94.

Weekly UK economic review

Economic data releases during the week under review were overshadowed by financial market woes as the Bank of England (BOE) struggled to install some confidence back into the financial system. The UK Prime Minister, Gordon Brown stated that together with the Governor of the BOE and the Financial Services Authority, they will do whatever is required to maintain stability and to protect the interest of depositors.

The British government had to nationalize Bradford & Bingley (B&B) on Monday, making the buy-to-let mortgage lender the second UK bank to be taken into public ownership this year. After intense weekend talks failed to find an outright buyer for Britain's ninth biggest mortgage lender, The Treasury said that it would take over B&B's !50 billion mortgage portfolio and sell its deposits and branches to Spanish bank Santander.

Meanwhile, somewhat out of the limelight, the credit crunch continued to take its toll on the UK's economic data. This was mainly reflected in the sharp slowdown of bank lending to the non-financial private sector. In the second quarter of 2008, Gross Domestic Product (GDP) stalled, showing a 0 per cent change from the first quarter. This makes the possibility of declines in the last two quarters of the year more real.

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.