Financial news

It was another meagre day of trading on the Malta Stock Exchange yesterday as few issues on the equity market managed to register any significant change in price. Thin volume of 101,347 shares were traded across 49 deals, as the momentum the MSE had gathered late in 2009 and earlier this year seems to be levelling off. The index lost just over one point to close the day marginally down, at 3863.203.

One stock which did manage to close much higher at the end of the day was Datatrak Holdings plc which jumped up almost 21.9 per cent, or 3c5, and finish at €0.195.

Shares of GlobalCapital plc also ended the day on the upside as the financial services firm saw its shares close at €1.80, up 10c, or 5.9 per cent.

The only other stock to finish in positive territory yesterday was Bank of Valletta plc, whose shares managed to stop their slide and gain 4c to close at €3.46 on light volume of 9,596 shares in 14 deals.

Those on the downside yesterday were HSBC Bank Malta plc whose shares closed 3c5 lower to €3.90 on very light volume of 3,400 shares, and Lombard Bank Malta plc, which also closed down 0c1 at €3.119 on volume of 2,000 shares.

Other stocks to trade yet register a change from the previous day's close were FIMBank plc which ended the session at US$1.18, Go plc which closed at €2.275, Grand Harbour Marina plc at €1.90, Malta International Airport plc at €3.10, Medserv plc at €4.25 and Simonds Farsons Cisk plc which ended the session at €1.72.

Weekly UK economic review

In the United Kingdom, the economy resumed growth by less than expected in the fourth quarter of 2009 as service industries and manufacturing expanded just enough to pull Britain out of its longest recession on record. According to the Office for National Statistics, gross domestic product rose 0.1 per cent in the fourth quarter which was significantly below the 0.4 per cent expected by economists. This brought overall GDP down by a record 4.8 per cent in 2009. Bank of England policy-makers will study the data as they asses the strength of the recovery and decide next week whether to halt bond purchases and prepare to withdraw emergency stimulus measures.

A separate report has shown that Britain's budget deficit has widened to a new record high in December. Total net debt rose to £870 billion, which is equivalent to 61.7 per cent of GDP, the highest since records began in 1974. The rapid rise in British government borrowing, which has been faster than in almost any other economy, has troubled financial markets and led credit rating agencies to warn that the UK's triple-A sovereign rating may be at risk if clear deficit reduction plans are not published after elections due in June.

UK retail sales climbed less than expected in December as price increases lowered spending during the holiday season, which continued to cast doubt on the strength of a domestic recovery. The volume of sales rose 0.3 per cent from November after dropping by the same margin the previous month. The median forecast by a Bloomberg News survey of 27 economists has shown expectations for a 1.1 per cent gain in sales.

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.