Financial news

Trading activity on the Malta Stock Exchange was concentrated in the two largest financial services components during yesterday's session, with deals being registered in five equities and the total number of transactions amounting to 33. The MSE Index declined slightly by 0.197 per cent to close at 3,353 points.

Bank of Valletta was active throughout the session, with trades starting off higher at the €3.45 level, thereafter continued buying interest pushing the price up to the intraday high of €3.52. Further supply entered the market towards the end of the session at €3.48 to end the session at this price, which equates to a 1.16 per cent increase over its previous closing with a total turnover of 32,617 shares dealt over 22 trades.

All transactions in FIMBank, which amounted to 7,500 shares spread over two deals, were struck at $1.45 which corresponds to a decrease of 5c or 3.33 per cent.

A high volume was also registered in HSBC Bank Malta when 11,075 shares were traded across six deals, with matches at the opening bell struck at €2.86,1 with the greater part of executions done at this level. The last trade of the day was done at €2.88, recouping some of the earlier decline, to close reduced by 0.66 per cent.

A sole deal with a low volume of 600 shares in Crimsonwing saw the equity lower by the slightest of margins to close at €0.497 which is the lowest level reached for this year.

Go was the non-mover for the session when 4,000 shares were exchanged over two deals, ending at €1.90.

In the fixed interest sector of the market, activity was spread across seven corporate bonds and five government stocks. The 4.8 per cent MGS 2016 (II) attracted the highest turnover, with 147,500 nominal, as it closed slightly down at €101.68. The 4.6 per cent HSBC Bank Malta 2017 had 55,500 nominal swapped over five transactions, leaving the price unchanged at €95.49.

UK economic review - weekly round-up

The UK Housing market celebrated its first anniversary of declining house prices. According to Nationwide, home values have fallen for 12 months on the trot and the cost of a typical house is circa 15 per cent lower than this time last year. Prices are now back to the levels prevailing in February 2006.

House prices have helped to push consumer confidence at an all-time low. The Gfk consumer confidence survey showed UK households are less confident about major purchases than at any time since the survey began in 1982.

Britain's construction sector shrank in concert with the depressed housing market, as the Chartered Institute of Purchasing and Supply/Markit construction index fell to 35.1 from 38.8 in September. That was the eighth consecutive month the index has been below 50, the level which marks contraction, and the lowest since the series began in 1997.

Meanwhile, the Bank of England is expected to cut interest rates today from the current level of 4.5 per cent. According to a Reuters poll of economists, consensus is still pointing to a 50 basis point cut. Nonetheless, there has been a growing number of calls for a larger move in rates. Interest rate futures are mostly pricing in a 75 basis point cut, which is also the forecast of another seven economists in the Reuters poll. This has also been reflected in the British pound's recent depreciation.

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.