Financial news

The Malta Stock Exchange Index suffered double digit losses yesterday, dropping more than 35 points, or one per cent to close at the 3,349.381 level, as equities finished mixed after being trading mostly in the black for most of the session.

The day’s biggest loss was suffered by International Hotel Investments plc, whose shares resumed their heavy trading volumes and dropped 5c, or 5.9 per cent, to close at €0.80 on volume of 56,372 shares.

Shares in Simonds Farsons Cisk plc were also down on the day, losing 6c, or 3.4 per cent, to close at €1.730 in a single trade of 1,390 shares.

Shares in the local telecommunications provider, Go plc, gained 2c in the day after trading for most of the session 3c below its Wednesday’s closing price. Trading was relatively light as five deals took place for a total volume of 5,495 shares. The stock ended the session at €1.850.

In the banking sector, investors in Bank of Valletta plc stock, after pushing the shares higher for several sessions, decided to take profits and forced the shares 1c5, or 0.5 per cent lower.

The shares closed at the €3.26 level in moderate volume of 14 trades for a total of 12,904 shares.

HSBC Bank Malta plc shares, meanwhile, were up marginally as they closed up 0c5, or 0.2 per cent, to end the session at €2.805 on volume of 4,300 shares in four deals.

The last stock to trade in the day was that of Maltapost plc, which ended unchanged at €0.90, in a single trade of 231 shares.

Weekly UK economic review

In the United Kingdom, the Bank of England left interest rates unchanged at 0.5 per cent for the 20th consecutive month, yesterday.

Moreover, the bank kept its asset-buying programme at £200billion, ending for now specula-tion among market analysts that the bank might extend its quantitative easing measures to support the economy.

Meanwhile, British manufacturing output rose by its fastest rate in over 15 years, easing fears that the economy is on the verge of a downturn. In fact, manufacturing output posed for its sixth consecutive increase in August as it rose by 0.3 per cent, lifting the annual rate of output to six per cent from an upwardly revised figure of five per cent in July.

The monthly increase was largely driven by food and transport equipment among other items.

British services activity growth unexpectedly accelerated in September from a 16-month low. In fact, the Purchasing Managers’ Index (PMI) for services rose to a reading of 52.8 from its prior 51.3 level a month earlier.

Likewise, activity in the construction sector picked up in September, as the PMI for construction rose to a reading of 53.8 from its August level of 52.1. However, business confidence about the future fell to an 18-month low on worries that government spending cuts might have on the sector.

In the housing market, house prices plunged by a record 3.6 per cent on the month in September, adding to signs that the UK’s housing sector is rapidly losing steam.

In fact, September’s decline was the biggest since records began in 1983.

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.