Financial news

The Malta Stock Exchange index was down marginally yesterday, dropping over three points, or 0.1 per cent, to close at the 3562.263 level. Trading was particularly light as only 5,452 shares exchanged hands across 10 trades in four issuers.

Making the day’s biggest gains were shares of one of Malta’s local telecommunications company, Go plc, which gained 4c, or 2.15 per cent, to close at €1.90 in two deals of 1,050 shares.

In the banking sector, Bank of Valletta plc gave up some of the gains from recent sessions, losing 3c5, or 1.1 per cent, to close at €3.31 in low volume of 2,482 shares across five deals.

HSBC Bank Malta plc, meanwhile, finished unchanged at €3.06 in two trades of 1,070 shares.

Malta International Airport plc rounded out the day’s equity trading but also closing unchanged, at €1.62, in a single trade of 850 shares. The best unsatisfied bid at the end of the day stood at €1.50 for 2,322 shares, while the best unsatisfied offer stood at €1.62 for 1,350 shares.

Trading in the corporate bond market was also muted as an equivalent of €141,175 nominal, across 16 deals, were traded in seven bonds. The biggest move on the day was made by the 7.15% Mediterranean Investments Holdings 2015-2017 US$ bond which gained another US$1.99, or two per cent to close at US$103.00. Yesterday’s gain came on top of the US$1.00 the bond gained in Wednesday’s session. The 7.15% Mediterranean Investments Holdings 2015-2017 bonds, denominated in euro, pound sterling, and US dollar, have been popular among investors since trading initially on Tuesday.

Weekly UK economic review

In the United Kingdom, the Bank of England’s (BoE) Monetary Policy Committee, now back up to nine members, led by Governor Mervyn King, held interest rates at 0.5 per cent. The Committee, as expected, also kept its bond-stimulus plan at £200 billion. The minutes to the meeting will be published on August 18.

In the manufacturing sector, growth eased slightly in July as the Purchasing Managers’ Index fell to a reading of 57.3 from 57.6 in June. This was above forecasts of a reading of 57.0 and still held close to May’s 15-year high of 58.1. On the same note, the services industry in the United Kingdom grew at its slowest rate in 13 months in July. In fact, the PMI index for the sector fell to a reading of 53.1 from 54.4 in June. This was below economists’ forecasts for an unchanged reading, as worries about tightening fiscal measures weighed on confidence and increased fears about the strength of the economic recovery.

In the housing sector, according to the BoE, UK banks granted 47,643 loans to buy homes in June, compared with 49,461 in May. This was the lowest in four months and below the 48,800 economists’ forecasts. This shows that the housing recovery is losing steam. Finally, a measure of consumer confidence fell for the fifth month in a row in July to its lowest in almost a year as the index fell to a reading of minus 22 from minus 19 in June.

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.