Financial news

The Malta Stock Exchange Index gained seven points, or 0.2 per cent yesterday, to end at the 3466.422 level, as Bank of Valletta plc shares buoyed the market, in what was otherwise a lacklustre performance for equities. Volume at the end of the day stood at 57,879 shares in 37 deals.

Shares in the major local retail bank gained 3c8, or 1.2 per cent, to close at €3.24 in 15 trades of 11,434 shares. BOV's major competitor in the retail banking sector, HSBC Bank Malta plc, who has also witnessed its shares trading actively of late, finished unchanged on the day, closing at €3.00 in seven deals of 7,824 shares.

Outside the banking sector, Maltapost plc lost ground yesterday as its shares dropped 4c4, of 5.2 per cent, to close at €0.806 in light volume of 3,124 shares across two deals.

The best unsatisfied bid at the end of the day stood at €0.806 for 2,996 shares while the best unsatisfied offer stood at €0.95 for 15,052 shares.

In the tourism sector, International Hotel Investments plc witnessed 20,000 shares traded across five deals to close unchanged at €0.80, while Malta International Airport plc lost 0c1, or less than 0.1 per cent, to close at €1.56 in four deals of 12,272 shares.

The other issue to trade in the session was Go plc, whose shares closed unchanged at €1.90 in four trades of 3,225 shares.

Weekly UK economic review

In the United Kingdom, the number of people claiming jobless benefits fell for the fifth consecutive month, by a more than an expected 20,800 to the lowest in a year. As a result, the claimant count rate was pushed down to a 15-month low of 4.5 per cent.

Meanwhile, unemployment as measured by the wider International Labour Organisation (ILO) method was 2.47 million in the three months ending in May, as the number of people without a job fell by 34,000. As a result, the ILO unemployment rate came down to a four-month low of 7.8 per cent.

Annual inflation, as measured by the Consumer Price Index (CPI) eased to 3.2 per cent in June from 3.4 per cent registered in May. On the month prices rose 0.1 per cent. The biggest downward pressure to CPI during the month came from falling energy prices. Inflation has been above the Bank of England's target since December last year. Core inflation, which takes out volatile energy and food prices, unexpectedly rose to 3.1 per cent, its highest reading since 1997, raising fears that price pressures are far more entrenched than thought.

Elsewhere, the goods trade deficit widened to £8.06 billion in May from an upwardly revised £7.4 million deficit the previous month. Imports increased 2.4 per cent on the month, while exports remained unchanged. Finally, the final reading of 0.3 per cent economic growth as measured by the Gross Domestic Product (GDP) for the first quarter of this year was unrevised. This was due to the fact that the upward revision in the services sector outweighed a downward revision in the construction sector.

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.