Financial news

Trading activity during yesterday's session on the Malta Stock Exchange resulted in a marginal 0.4 per cent drop in the index which ended the day at 3,067.16 points. Activity in the equity market was relatively subdued as investors struck a total of 14 deals in six different listings.

RS2 Software was the session's worst performer as the equity shed two cents or 3.2 per cent to terminate at an all time low of €0.60. This decline resulted on very low volume as two investors swapped 500 shares.

HSBC Bank Malta was also a loser during the day as the equity depreciated by a further three cents or 1.1 per cent to terminate at €2.68.

The bank was also, in relative terms, the most liquid and actively traded equity as investors transacted 5,800 shares over five deals for a market value of €15,598.

Medserv headed the list of gainers as the equity registered an increase of 4c5 which equates to a 1.3 per cent gain to terminate at €3.545. Activity in Medserv's shares resulted when investors transacted 2,650 shares across two deals.

Similarly, Malta International Airport also declined on the day albeit losing only one tenth of a cent to end at €2.35. Activity in the airport operator was spread over three deals for a market value of €8,817.

Both Bank of Valletta and MaltaPost were non-movers during the session as the two equities closed unchanged at €2.90 and €0.69 respectively. Investors in the bank swapped 1,906 shares over two deals, whilst postal operator registered a single deal for a mere 558 shares.

Weekly UK economic review

The economic headlines in the United Kingdom during the past week were focused on the Bank of England's minutes, which revealed more information on how the Monetary Policy Committee members wanted to raise the country's quantitative easing programme.

Bank of England Governor Mervyn King and two other MPC members wanted to raise Britain's quantitative easing by £75 billion but were outvoted by their six colleagues. The six-to-three split vote revealed in the minutes has sent shockwaves through the markets which had been expecting a unanimous vote in favour of the £50 billion extension. Nevertheless, all members were in agreement on keeping interest rates steady at 0.5 per cent and on the need for "substantial" further asset purchases. Meanwhile, British inflation unexpectedly held steady, as consumer prices were unchanged on the month in July, at 1.8 per cent, in part as a result of less aggressive discounting in the July sales on certain commodities. Analysts had predicted a further easing below the BoE's two per cent target to 1.5 per cent.

Asking prices for homes in England and Wales are an average 3.1 per cent lower during this month than a year ago. Additionally, during the month of August there was a monthly decline of 2.2 per cent, reversing the 0.6 per cent gain during July. London was the only region were house prices rose in August by 2.1 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.