Financial news

Trading activity during yesterday's session on the Malta Stock Exchange continued in the negative direction initiated during the mid-week session as the index registered further losses, dropping by 1.5 per cent to close at 3,217.93 points.

HSBC Bank Malta headed the list of losers during the day as the equity shed 10c1 or 3.4 per cent to terminate at €2.849.

Likewise, Bank of Valletta also terminated the session in red as its share price dropped by a further 6c2 or 1.6 per cent to close at the €3.798 level. The financial services company recorded the day's highest number of trades as investors transacted an aggregate of 20,753 shares across 32 deals for a market consideration of €78,843.

FIMBank was the session's most liquid equity as investors exchanged a total of 47,000 shares across four deals. The trade finance specialist registered no movement in price as it closed unaltered at $1.14. FIMBank announced a Shareholders' Agreement and Share Subscription Agreement have been entered between FIMBank and another three companies, for the setting up of a joint venture, to carry out the business of factoring, forfeiting and trade finance and related activities in India.

Outside of the banking sector, Maltapost was the day's only loser as the equity shed half a euro cent or 0.8 per cent to terminate at €0.60.

Malta International Airport and International Hotel Investments were non-movers during the session as the equities closed unchanged at €2.20 and €0.80 respectively.

Go was also active for the day's trading session albeit registering no movement to close unchanged at €1.65.

Weekly UK economic review

The economic headlines emanating from the United Kingdom over the past week were primarily focused on yesterday's Bank of England meeting. Other noteworthy data included positive results in the manufacturing sector, consumer confidence and housing market indicators.

The Bank of England (BoE) said that it would expand its quantitative easing programme by £25 billion to help support the economy. The increase would bring the total asset-buying scheme to £200 billion, which is equivalent to more than 14 per cent of Britain's economic output. The BoE also left interest rates unchanged at a record low of 0.5 per cent, as expected. Meanwhile, British manufacturing activity grew at its fastest rate in two years in October as new orders rose at their fastest in almost six years. In fact, the Purchasing Managers index of manufacturing activity rose to a reading of 53.7 in October from an upwardly revised 49.9 in September, which signals the fastest pace of growth since November 2007 and beating forecasts of a rise to a reading of 50.

UK house prices rose by 1.2 per cent in October, which left the annual drop in prices at its smallest in one and a half years, largely due to a lack of supply and higher demand for property. In fact, house prices were 1.5 per cent down in October compared with a year ago. Meanwhile, British consumer confidence rose to its highest in 17 months in September as people were their most optimistic about the future than at any time in almost four years.

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.