Financial news

Trading activity during yesterday’s session on the Malta Stock Exchange ended on a positive note as the Index registered a marginal 0.3 per cent increase, edging higher above the 3,200 level. Bank of Valletta shares took centre-stage during the day as the equity registered further highs for the current year.

In fact, Bank of Valletta headed the list of gainers in the banking sector as its shares appreciated by 14c9 or 4.5 per cent to terminate at the €3.45. The financial services company also had the highest number of deals, as investors negotiated 8,600 shares over seven deals for a market consideration of €29,418.

On a negative note, HSBC Bank lost previous gains registered during prior sessions as its share price was knocked down by 8c9 or 3.1 per cent to close at €2.801. Volume in the bank consisted of 2,630 shares swapped across 3 deals.

Elsewhere in the banking sector, Lombard Bank Malta registered no movement in its share price to terminate unchanged at €2.54 when two investors swapped just 110 shares. FIMBank registered a 0c5 of a dollar increase in price to close at $1.20.

Malta International Airport ended the session in positive territory as it rose by 14c4 or 6.5 per cent.

Other positive performers during the session were International Hotel Investments and Maltapost which rose by 0c5 and 1c to end the day at €0.88 and €0.70 respectively.

On the contrary, Middlesea Insurance and Go were among the laggards as they dropped by 2.4 per cent and 0.06 per cent to close at €1.60 and €1.578 respectively.

Weekly UK economic review

The economic highlights emanating from the United Kingdom during the past week were largely focused on the revision of the country’s second quarter Gross Domestic Product (GDP) results. Positive data was also seen in the consumer confidence indicators and mortgage approvals.

Britain’s economy shrank less than previously estimated in the second quarter of this year, due in part to a better than expected performance by the construction industry.

In fact, according to the Office for National Statistics, the country’s GDP contracted by 0.6 per cent which is less than the 0.7 per cent estimated a month ago. On the year, GDP dropped 5.5 per cent, unrevised from the previous estimate and still the largest annual decline since records began in 1995. Many analysts expect that the economy will return to growth in the third quarter of this year. Meanwhile, British consumer morale enjoyed its biggest monthly boost in more than 14 years in September as people grew increasingly optimistic about the economic outlook of the country than at any time in the past decade. The consumer confidence index leapt to a reading of -16 for this month from its prior -25 for the previous month, this was well above the -24 expected by economists.

In the housing market, Bank of England figures showed that mortgage approvals for house purchases during the month of August held broadly steady at 38,000. Households appear to be making some headway, as net lending on loans and overdrafts contracted further and the rise in deposits was the highest this year at £3.3 billion.

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.