Financial news

Trading activity during yesterday's session on the Malta Stock Exchange resulted in no gainers as all six active companies ended the session in red. This undoubtedly had a negative effect on the Index which declined by 0.4 per cent to close at 3,012.5 points. In the equity market, activity increased from Wednesday's session as investors swapped an aggregate of 19 deals.

FIMBank was the session's worst performer as the listing dropped by 4c5 of a dollar or by 3.5 per cent to close at $1.25. Volume in the trade finance specialist was relatively low as investors transacted 2,000 shares over two deals.

Bank of Valletta lost the 3c gain it registered during Wednesday's session, which brought the price back to the €3 level registered last Tuesday. The bank had the largest number of trades during the day and was also the most liquid as 14,640 shares were exchanged over seven deals for a market consideration of €43,920.

HSBC Bank Malta persisted in its downward trend albeit dropping by just a negligible 0c1 to terminate at €2.649. The equity was nevertheless trading at an intra-day low of €2.64 when some buying activity helped to support the price back up to its current position. Trading activity in the bank's shares was spread over 3,470 shares swapped across six deals.

Aside from the banking sector, Middlesea Insurance and Plaza Centres also ended the session in negative territory as the equities dropped by 1c and 0c9 respectively to close both at €1.64. Go also dropped by 1c or 0.6 per cent to terminate at €1.69.

Weekly UK economic review

In the United Kingdom the economic highlights over the past week were largely focused on the unemployment figures. The week also contained other important inflationary indicators both for consumers and producers.

The UK's jobless rate climbed to its highest rate in almost 13 years in July and while there were signs that the pace of layoffs may be slowing, economists cautioned that unemployment might remain a lagging factor in the country's economic recovery. In fact, the number of people out of work rose by 210,000 to 2.47 million in the three months to July, taking the jobless rate up to 7.9 per cent, the highest since 1996.

British producer input prices rose to their fastest rate in more than a year during August as they rose by 2.2 per cent, double the figure that was expected, after falling 1.1 per cent in the previous month. On the year, input prices were down 7.5 per cent driven largely by oil costs. Factory gate prices were 0.2 per cent higher on the month in August versus analysts' expectations of a 0.1 per cent increase, an unchanged rate of increase from the previous month.

Meanwhile, consumer price inflation slowed less than expected in August as transport costs rose, partly offsetting a downward impact from utility bills and food prices. In fact, consumer prices rose to 0.4 per cent on the month to give an annual reading of 1.6 per cent. Inflation has fallen more slowly in Britain than in other countries, where the annual Consume Price Inflation is already languishing in negative territory.

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.