Financial news

Following two negative sessions at the Malta Stock Exchange, the Index registered a mid-week increase of 0.32 per cent to end the day at 3,233 points. Activity was relatively higher than the previous trading day as five equities executed a total of 29 deals for a market capitalisation of € 102,327.

HSBC Bank Malta was the day's top gainer as the equity rose by 10c or 3.7 per cent to close at € 2.8. Volume traded consisted of 7,635 shares spread across five deals for a total value of € 21,446.

FIMBank also ended the trading session in positive territory as the shares rose by two cents to end at $1.47.

The single deal in the trade finance specialist shares was struck in the early minutes of the session.

Similarly, Malta International Airport earned a further one cent to its previous closing price to end at €2.5. Activity for the national airport was spread over a total of three deals. Intraday activity touch an intraday low of €2.48, but subsequent demand pushed the price higher to the abovementioned closing price.

Bank of Valletta was the most liquid and actively traded equity with 25,160 shares exchanged over as many as 19 deals, accounting for two-thirds of the day's trading activity. Despite the activity, the banking equity incurred a loss that amounted to 14c4 to end the day at €2.85 or 4.81 per cent lower than Tuesday's price.

Plaza Centres also suffered a loss of 5c for its first showing in 2009 to close the day at €1.68 as trade was spread over a single deal.

In the fixed interest sector of the market activity was mostly spread across eight government stocks and four corporate bonds. The highest turnover for the session was registered in the 5.5 per cent MGS 2023, as 1,750,000 nominal were exchanged in a single deal with the listing shedding €1.8 over the previous price. In the corporate debt issues the only increase in price was registered in the 7.5 per cent Mediterranean Investment Holding 2012/14 which rose by four cents.

Weekly UK economic review

Economic data released during the past week was overshadowed by deepening problems in the UK banking system. Moreover, the data that was indeed issued was of little respite to the banking industry and the general community.

The UK housing market remained in a moribund state. Despite significant falls in house prices, estate agents are still struggling to sell properties, as the typical estate agent is selling just one house every nine days, down from a little over one every three days at the start of 2007.

Inflationary figures were also on schedule, the Consumer Price Index (CPI) fell to 3.1 per cent from 4.1 per cent in November. The range of forecasts for the December CPI Inflation was huge with an approximate two percentage point spread for the year-on-year rate and a median rate of 2.6 per cent. One reason that headline inflation did not fall as sharply as expected was due to the failure of food price inflation to decline much.

Meanwhile, the ILO unemployment rate came in at 6.1 per cent in the three months to November. This unemployment rate stands as the highest rate since April 1999.

Yesterday, the minutes for January's Monetary Policy Committee were released. The Bank of England policy makers defeated David Blanchflower's bid for a full per cent interest rate cut this month, as they opted for the announced 50 basis point cut, arguing that too large a reduction may unsettle financial markets and the British economy.

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.