Financial news

Yesterday's trading activity at the Malta Stock Exchange supported the Index which rose by 0.4 per cent to close at 3,162.6 points.

The increase resulted from the positive performance of Bank of Valletta, which was the day's only gainer.

Following Wednesday's dismal performance, Bank of Valletta managed to recoup some of the losses it registered as its shares rose by 6c or 1.9 per cent to terminate at €3.25. The bank was also the session's most liquid equity as investors swapped 10,744 shares over eight deals. Bids of 2,000 shares at €3.25 and offers of 4,000 shares at €3.33 were the best unsatisfied positions at the close of trading.

HSBC Bank Malta was the most actively traded equity as investors transacted 7,132 shares over 10 deals for a market consideration of €19,969. The bank's share price closed unchanged at €2.80.

Lombard Bank Malta and FIMBank shares closed unaltered at €2.50 and $1.20 respectively. In the former investors transacted 5,000 shares over a single deal, while in latter turnover consisted of 3,000 shares swapped by two investors.

Go shares registered some volatility during the session as the equity was trading at an intra-day low of €1.551. Subsequently buying activity supported the price at higher levels, as the equity terminated the session unchanged at €1.56. Volume in the quadruple play communications company consisted of 4,300 shares exchanged across four deals.

Weekly UK economic review

The most salient economic indicators in the United Kingdom over the past week included the Monetary Policy Committee (MPC) meeting and the unemployment figures for September. During the reported period consumer price inflation and producer price inflation figures were also published.

The Bank of England kept interest rates on hold at 0.5 per cent and asset purchases will continue as planned. However, next month's decision regarding the Asset Purchase Programme will be trickier, as the current £175 billion asset purchase ceiling will have been reached. The MPC must then decide whether the recent signs of recovery are as the first rays of light in a sustained recovery. The number of Britons claiming jobless benefits rose by its smallest amount in almost one and a half years in September. In fact the claimant count unemployment rose by 20,800 when consensus expected that in September the number of jobless people would increase by 25,000. The positive news was further supported by the unemployment rate which remained unchanged from its August level at 7.9 per cent.

British inflation fell more than expected in September as it dropped to 1.1 per cent from 1.6 per cent in August. This was the lowest level recorded in a period of five years, when analysts were expecting an inflation rate of 1.3 per cent. Meanwhile, manufacturers' raw material costs rose at their fastest rate in more than a year in August as they rose by 0.5 per cent, driven up by oil costs and resulting in the smallest year-on-year rate of decline since April.

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.