Financial news

Yesterday's trading session on the Malta Stock Exchange ended on a negative note as the Index was dragged down by a single equity. The Index thus shed 0.1 per cent to terminate at the 3131.8 level.

Bank of Valletta was the only equity during the day to close in the red as it shed the 3c gain it registered during Wednesday's session to terminate at €3.33. Turnover in the bank consisted of 9,199 shares swapped across seven deals.

HSBC Bank Malta was for the second consecutive day a non-mover as the banking equity closed unchanged at €2.70.

The last time the bank registered a change in price was during last Tuesday's session when the value of its shares dropped by 5c. Turnover in the financial services company consisted of 5,000 shares spread over four deals. RS2 Software was the most liquid equity during the session as investors exchanged a total of 54,027 shares across seven deals for a market consideration of €33,496.

The trading activity of the company had no effect however on the Index as the equity closed unchanged at €0.62.

Likewise, Malta International Airport shares also remained unaltered during the session as it closed unchanged at €2.25. Volume in the airport operator was muted as a mere 328 shares were exchanged over a single deal.

Go shares were the only to benefit from the day's trading activity as the equity rose by 2c or 1.3 per cent to close at €1.52. Activity in the quadruple play communications' company resulted when investors swapped 9,955 shares over three deals.

Weekly UK economic review

The economic headlines emanating from the UK over the past week were focused on the Bank of England's interest rate decision yesterday. Elsewhere, there was positive economic data in the housing market and in the services sector coupled with an increase in consumer confidence figures.

The Bank of England left its interest rates unchanged at a record low of 0.5 per cent for the seventh month running and said that it would keep its £175 billion Asset Buying Programme unchanged. Meanwhile, Britain's services sector expanded at its fastest rate for two years in September as it rose to a reading of 55.3 from its prior 54.1 in August, following a stronger performance in restaurants, hotels and business-to-business companies. Firms were also more optimistic about the next 12 months than at any time since April 2007. Supporting this positive trend, consumer confidence also rose to its highest levels in 17 months for September as more people were optimistic about the future than at any time in almost four years.

The UK manufacturing sector seems to be stabilising as the Purchasing Managers' Index for September recorded a reading of 49.5, fractionally below the 50 mark that signals expansion. Although marginally down from its prior 49.7 in August, it appears that the worst is over for manufacturing.

Finally, in the housing market, prices rose for the fifth consecutive month in September, increasing by 0.9 per cent, which was slightly higher than the 0.7 per cent anticipated by analysts. Even in this sector, consumer confidence in the housing market is helping prices stabilise.

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.