Financial news

Yesterday's session on the Malta Stock Exchange saw a considerable leap in the index which rose by 2.1 per cent to terminate above the 3,400 level. In the equity market, the day ended in positive territory for nearly all equities, with the most considerable gains posted in the largest listed equity in terms of market capitalisation.

HSBC Bank Malta shares extended their gains by a further 15c5 or five per cent to terminate at €3.25, their highest levels since September 2008. The bank also registered the day's highest number of deals as investors transacted an aggregate of 20,844 shares across 20 deals.

Bank of Valletta was also on the list of gainers during the day as it rose by 2c9 or 0.8 per cent to close at €3.829, even though during the session it was trading marginally higher at the €3.83 level. Turnover in the bank consisted of 6,093 shares swapped across eight deals.

Outside the banking sector, Go shares headed the list of gainers as its share price rose to its highest levels since December 2008. In fact, the equity rose by 4c5 or 2.4 per cent to terminate at €1.945.

Following yesterday's dismal performance, Malta International Airport recouped some of its losses during the session as it gained 5c or 2.1 per cent to close at €2.40. Turnover in the airport operator consisted of 6,000 shares transacted over four deals.

Middlesea Insurance pared gains during the session as it was trading at an intra-day high of €0.699 when a bout of selling activity moved the price back to the €0.65 level.

Weekly UK economic review

Britain's economy shrank for a sixth consecutive quarter in the three months to September but at a slower pace than previously reported, which kept alive expectations that the country may return to growth before the end of the year.

In fact, Gross Domestic Product (GDP) dropped by 0.3 per cent in the third quarter, less than the 0.4 per cent initially reported. Britain's GDP was 5.1 per cent lower in the third quarter than a year ago, which is also a smaller drop than the 5.2 per cent initially estimated. Some analysts expect that third quarter figures could be revised further since they are still based on just 70 per cent of the data that statisticians will have to hand when they make a final reading on December 22.

The UK's public finances deteriorated at a much sharper pace than predicted last month, taking public borrowing as a share of GDP to its highest on record. In fact, the public sector posted a net cash requirement of £5.9 billion in October, nearly twice as much as expected. The government's preferred accruals-based measure of public sector net borrowing came in at £11.4 billion, also well above the £7 billion anticipated by economists in a Bloomberg survey. This brought public sector net debt as a percentage of GDP up to 59.2 per cent, which is the highest reading since the series began in 1974/75. Meanwhile, the Office for National Statistics said that UK business investment fell in the third quarter by three per cent from the previous three months and dropped 21.7 per cent from a year earlier.

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.