Financial news

The Malta Stock Exchange index dropped another four points yesterday to close at the 3390.907 level which follows Wednesday’s drop of just one point. Trading was more robust than had been experienced earlier in the week as 60,650 shares were traded across 25 deals in eight equities.

Banking shares continued to put pressure on the index. Lombard Bank Malta plc was the biggest loser on the day, dropping 2c, or 0.7 per cent, to close at €2.73 in a single trade of 300 shares. Shares in Bank of Valletta plc were also down yesterday, losing 1c, or 0.3 per cent, to close at €3.22, in two trades of 1,300 shares.

HSBC Bank Malta plc shares, meanwhile, closed unchanged at €2.84 in six trades for a total of 2,150 shares.

The sole gainer on the day was Maltapost plc, which was up marginally, by 0c1, to end the session at €0.90 in robust volume of 20,500 shares across three deals.

Other equities to trade in the day were Go plc, which saw 16,000 of its shares exchange hands across seven deals to close unchanged at €1.89, and Plaza Centres plc which also closed unchanged, finishing at €1.65 in a single trade of 600 shares. Malta International Airport plc stock as well as Middlesea Insurance plc stock were also traded during the session as both closed unchanged, ending at €1.56 on 18,800 shares, and €1.00 on 1,000 shares, respectively.

Weekly UK economic review

Inflation pressures in the United Kingdom, as measured by the Consumer Price Index held steady at 3.1 per cent in August from a year earlier, higher than the three per cent reading which was expected by economists. This reading is higher than the government’s three per cent limit for the sixth month and was mainly driven by higher costs in airfares and clothing prices.

On a monthly basis, prices on consumer goods also increased by a higher than expected 0.5 per cent in August. However, forecasts published by the central bank in August shows that inflation is expected to fall back to target during the medium term.

In the labour market, the number of Britons who are claiming jobless benefits rose last month for the first time since January by 2,300. This was much higher than the 3,000 decline which was expected and has brought to an end a six-month period of declines of more than 150,000 claims. Meanwhile, the less-timely measure of employment by the International Labour Organisation which also includes people who are out of work but also claiming benefit, fell by 8,000 in the three months to July to a reading of 2.467 million. This is the smallest fall since the three months to April which has kept the unemployment rate at 7.8 per cent.

On a negative note, retail sales including the volatile, automotive fuel, fell by 0.5 per cent in August on the previous month where they increased by a downwardly revised 0.8 per cent. This was the first decline since January which has surprised analysts’ expectation of a 0.3 per cent increase.

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.