Financial news

The Malta Stock Exchange index closed four and a half points lower yesterday, to finish at the 3,363.588 level as trading volume was considerably low, at 19,767 shares across 22 deals in five equities.

The equity to suffer the biggest loss was that of Lombard Bank Malta plc, which dropped 8c, or 3.1 per cent, to close at €2.500 in three trades of 2,600 shares. Yesterday’s closing price represents the lowest level for Lombard’s stock for just over a year.

The other equity to close lower in the session was that of Malta International Airport plc (MIA), which dropped 1c, or 0.6 per cent, to close at €1.650 in five deals for a total of 6,150 shares. Yesterday’s loss represents MIA’s first after several days of gains in its share price.

Other shares to trade in the day yet failed to register a change in the closing price were Bank of Valletta plc, HSBC Bank Malta plc, and Middlesea Insurance plc, which closed at €3.30, €2.80 and €1.00, respectively, all on light volume.

Trading in the corporate bond market remained light, after Wed­nesday’s almost non-existent trading session, as 23 deals were executed across €91,574 nominal. Yet results were mostly positive as only one of the nine issues to trade in the day finished lower while five finished higher. The big mover was the 6.20% - 6.80% International Hotel Investments 2013 bond which closed €1.00, or 1.0 per cent higher, to end at €101.00 in a single deal of €5,000 nominal.

Weekly UK economic review

In the United Kingdom, according to data from the Office for National Statistics in the British economy grew twice as fast as expected during the third quarter of this year. gross domestic product increased by 0.8 per cent in the three months which ended in September on the previous quarter when it grew by 1.2 per cent. Economists were forecasting that the economy will gain 0.4 per cent. In annual terms, Britain’s economy grew by 2.8 per cent in the third quarter of this year, the fastest rate in three years and up from 1.7 per cent in the previous quarter.

Meanwhile, the credit rating agency, Standard and Poor’s has upgraded Britain’s outlook from Negative to Stable due to the Prime Minister’s ambitious austerity programme and the deepest spending cuts since World War II. Elsewhere, British retail sales, including automotives declined for the second consecutive month as sales fell by 0.2 per cent in September after declining by 0.7 per cent during the previous month. Economists were forecasting an increase of 0.3 per cent. On a yearly basis, sales rose 0.5 per cent in September, the least since January, after increasing by 0.8 per cent in the previous month.

Finally, in the housing market, according to a measure compiled by the Nationwide Building Society, house prices continued to deteriorate in October, as prices fell to the lowest level in eight months. The average cost of a home dropped by 0.7 per cent in October to £164,381. From a year earlier, prices increased 1.4 per cent, the least since September 2009.

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.