Financial news

Trading activity during yesterday's session at the Malta Stock Exchange ended on a negative note as the Index shed 1.2 per cent to terminate close to the 3,000 level at 3,019 points. Activity in the equity market was relatively muted as investors transacted an aggregate of nine deals across four different listings. Banking equities were the main drag on yesterday's negative outing.

Bank of Valletta ended the session in the red as the equity shed 15c, which equates to a 5.3 per cent decrease and a closing price of €2.70. The financial services company was also the day's most liquid and actively traded equity as investors swapped 7,472 shares over five deals for a market consideration of €20,557.90. Bids of 1,000 shares at €2.70 and offers of 220 shares at €2.88 were the best unsatisfied positions at the close of trading.

Lombard Bank Malta also depreciated during the session as the equity lost 5c or 1.9 per cent to end the day at €2.55. Investors in the bank transacted a total of 2,000 shares over two deals.

Likewise, HSBC Bank Malta shares also declined on the day's trading activity albeit losing a marginal 1c5 or 0.6 per cent to close at €2.655. Activity was relatively subdued as two investors swapped 2,360 shares.

The only non-banking equity to be active during the session was Go, which was also the day's only non-mover as it closed unchanged at €1.80. Volume in the quadruple play communications' company was very low as 200 shares were swapped over just a single deal.

In the fixed interest sector of the market, activity was spread over two government stocks and seven corporate bonds.

Weekly Uk economic review

The economic indicators over the past week in the United Kingdom were focused on the growing rate of unemployment in the country and the Bank of England's August inflation report. Other significant data related to the housing market, retail sales and producer output prices.

The British unemployment rate increased to 7.8 per cent in the period between April and June from the previous three-month high of 7.6 per cent, above the anticipated rise to 7.7 per cent and hitting its highest rate since 1996. This brings the total number of people out of work to over 2.4 million, with many analysts expecting that this might hit three million by next year. Meanwhile, British factory gate prices declined at their sharpest rate in almost eight years in July falling by an annual rate of 1.3 per cent, the lowest annual rate since November 2001. This is nevertheless above analyst expectations of a 1.6 per cent decline, suggesting that inflation pressures have further to fall. In fact, the Bank of England's inflation report suggested that the nation's inflation will be below the two per cent target in 2011 if interest rates rise next year and the economy will take a long time to recover.

British retail sales rose by 1.8 per cent in July when compared to the same month last year, as seasonal clothing lines, food and home-ware products registered an increase in sales. Elsewhere, in the housing market, the decline in house prices has eased in June, declining by 10.7 per cent when during the same month last year, house prices were down by 12.5 per cent.

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.