Financial news

Following days of negative outings at the Malta Stock Exchange, the Index managed to post a slight mid-week comeback as it rose by 0.46 per cent to close at 3,008 points. Activity was higher than usual particularly in the fixed interest sector of the market. Trading in the equity market was spread over a total of 24 deals struck between five listings with the components in the financial services sector pushing the Index into positive territory.

HSBC Bank Malta was the most actively traded equity as a total of 11 deals were exchanged for a value of €29,954. The financial services company registered a respectable increase of three cents or 1.2 per cent to end the session at €2.53. Anticipation is growing as the company will soon announce its full year results ending December 2008.

Bank of Valletta was also a gainer on the day as the equity rose by two cents to close at €2.48. Trading activity was spread over a total of eight deals for a market consideration of €14,624.

Lombard Bank was the day's best performer as the banking equity rose by 5c or a 1.96 per cent rise from the last time it traded, to conclude the day at €2.60. The equity traded on low volume as only 6,000 shares were exchanged over a total of three deals.

Malta International airport incurred a loss in price as the equity shed five cents to terminate the session at €2.45, which is a new low for the company. The airport operator registered just a single deal with a market value of €12,250. Similarly, MaltaPost was also on the loosing side during Wednesday's session as the equity shed three cents or 3.66 per cent to end the session at €0.79 on low volume.

Trading activity in the corporate debt issues was spread over 10 company bonds with the euro tranche of the seven per cent MIDI 2016/18 registering the highest turnover for the day at 124,600 nominal over 15 deals. Higher activity was registered in government stocks, where activity was spread over 12 different issues with only one issue incurring a decrease in price. The laggard on the day was the 5.9 per cent MGS 2009 as it declined by 10 ticks over a single deal.

Weekly UK economic review

The economic data schedule for the United Kingdom was relatively busy over the past week, with some odd positive data marred with a nonetheless ailing economy. The Monetary Policy Committee (MPC) did its part to lift the spirits of British consumers as it reduced interest rates by a further 50 basis points to one per cent. There were some economic pundits against last week's cut, and in favour of immediate quantitative easing and other unconventional policy measures. But the BoE is likely to exhaust its monetary arsenal before embarking on such measures, just like its American counterpart.

On a rare positive note, glimpse of light came through thanks to trade data, retail sales and some housing figures. December's trade data revealed a narrowing in the trade in goods deficit, but this was mainly due to a drop in imports, which once again highlights weakness in the domestic economy. January's BRC retail sales showed a pick up in the annual growth rate of like-for-like sales values from -3.3 per cent to +1.1 per cent. The January sales period will be hard to sustain in the coming months as unemployment keeps on rising.

The HBOS House price Index reported a surprise 1.9 per cent jump in house prices in January, contradicting the nationwide index of house prices which continued to point to further deterioration.

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.