Financial news

Trading activity resumed as usual on the Malta Stock Exchange following Wednesday's public holiday. The session ended on a positive note as the Index rose by 0.5 per cent to close above the 3,800 level.

Bank of Valletta headed the list of gainers as the equity rose by 5c1 or 1.5 per cent to terminate at €3.35.

Likewise, HSBC Bank Malta shares also rose during the day as the equity gained 3c1 or 0.8 per cent to end the session at €3.85.

Marginal gains were also registered in Go shares as the price rose by 0c2 or 0.1 per cent to close at €2.299, which is the highest level registered by the equity since August 2008.

On the contrary, Middlesea Insurance was the session's only negative performer as the equity dropped by 5c or 6.2 per cent to close at €0.76. Trading activity in the insurance company consisted of 3,813 shares swapped across three deals. Meanwhile, the company announced that preliminary unaudited data for the fourth quarter of 2009 relating to the Italian subsidiary Progress Assicurazioni indicated a marked deterioration in claims experience during the period.

The board of directors of Middlesea Insurance has concluded that it was not feasible to provide further capital to Progress Assicurazioni over and above the €45 million that has been injected over the past year. As a consequence the company appointed an administrator to start a process for the winding up of this subsidiary.

Both FIMBank and GlobalCapital were non-movers during the day as they closed unchanged at €1.90 and $1.18 respectively. Both equities transacted a volume of 1,000 shares exchanged across a single deal.

Weekly UK economic review

In the UK, industrial production figures raised hopes that industry made a stronger contribution to GDP growth in the fourth quarter of 2009 than previously thought.

With energy output dropping, overall industrial production registered a better than expected monthly gain of 0.5 per cent in December, after an increase of 0.4 per cent the previous month.

Meanwhile, according to the Office of National Statistics in London, manufacturing production rose by 0.9 per cent from an upwardly revised 0.2 per cent in November. However, both manufacturing output and industrial production figures are still well below their early 2008 peaks.

On a negative note, UK trade figures worsened in December, in spite of a weak currency. The total trade deficit widened from £2.9 billion to £3.3 billion, due to imports rising at a faster rate than exports. Both exports and imports are being boosted by the UK and overseas car scrappage schemes.

Meanwhile, producer prices in January increased by an annual 3.8 per cent. This was the highest rate since 2008 and was mainly driven by increases in oil prices and scrap metal, and also by the fact that the economy is emerging from a recession. Economists in a Bloomberg survey were predicting an increase of 3.7 per cent. On a month on month basis, prices rose by 0.4 per cent.

Finally, the National Institute of Economic and Social Research (NIESR) published its Gross Domestic Product estimate for the month of January. This institute is expecting a growth of 0.4 per cent from a downwardly revised 0.1 per cent increase registered the previous month.

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.