Financial news

Trading activity for yesterday's session on the Malta Stock Exchange ended the negative showing of the Index, as it registered a marginal 0.3 per cent increase to terminate at 3,094.79 points.

HSBC Bank Malta was the session's best performer as the equity rose by 3c or 1.1 per cent to terminate at €2.69, bringing an end to three consecutive days of losses. Turnover in the bank was relatively low and consisted of 2,600 shares swapped over two deals.

Bank of Valletta continued to register gains during yesterday's session as the equity rose by 1c1 or 0.3 per cent to €3.41. The bank was also the session's most actively traded equity as investors swapped 14,000 shares across 12 deals for a market consideration of €47,593. The bank will be reporting its full year results for the 12 -month period ended in September 2009 today.

In the rest of banking sector FIMBank closed unchanged at $1.14. Volume in the trade finance specialist was unusually low as two investors transacted 80 shares.

Go was also a non-mover during the day as the equity terminated unaltered at €1.63. Trading activity in the quadruple play telecommunications' company resulted when 7,625 shares were transacted over four deals.

Malta International Airport was the day's only laggard as the equity dropped by 4c9 or 2.3 per cent to close at €2.101. On Wednesday, the equity has dropped by another 15c. Turnover in the airport operator consisted of 2,100 deals swapped across two deals.

Weekly UK economic review

The economic highlights in the United Kingdom over the past week were firmly focused on the third quarter Gross Domestic Product results. Other salient economic data regarded retail sales and mortgage approvals.

Britain's economy contracted in the third quarter of this year confounding expectations that the downturn was ending. Economic output in the three months to September fell 0.4 per cent compared to the previous quarter, making the current recession the longest in the country's post-war history.

Sterling plunged three cents against the US dollar and notched its biggest one-day decline against the euro in six months as traders speculated that the Bank of England was more likely to expand its quantitative easing programme to secure recovery.

Analysts were expecting that GDP rose by 0.2 per cent. In fact, not even a single analyst out of 35 polled by Reuters had predicted a negative reading.

Meanwhile, British mortgage approvals for house purchases rose to an 18-month high in September but secured lending remained weak and the Bank of England's preferred gauge of money growth fell at a record pace.

Aside from property decisions, consumers are reducing unsecured borrowing and increasing personal deposits.

British retail sales volumes grew at their fastest pace in almost two years in October. In fact, the Confederation of British Industry reported that sales balance rose to a positive eight per cent in October form a positive three per cent in September.

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.