Financial news

The Malta Stock Exchange Index fell almost six points, or 0.2 per cent yesterday, to close at the 3,500.197 level. Trading was mixed, as three of the seven equities to trade in the session closed lower while two finished higher and two closed unchanged.

RS2 Software plc shares suffered a substantial loss, dropping 6c, or 10.7 per cent, to close at the €0.500 level, in a single trade of 2,000 shares.

Also closing lower were the shares of Malta International Airport, which fell 2c3, or 1.4 per cent, to close at €1.625 in a single trade of 2,600 shares.

Bank of Valletta plc stock compounded the Index’s losses by falling 1c1, or 0.3 per cent, to end the day at €3.689 in low volume of seven trades for a total of 3,768 shares.

Making advances on the day were shares of MaltaPost plc, which gained 2c3, or 2.5 per cent, on volume of 3,034 shares across two deals, to close at €0.950. Yesterday’s price represents an all-time high for the local postal operator’s shares.

FIMBank plc shares also finished higher, adding 1c, or 1.1 per cent, to its closing price, to end the session at US$0.940.

Other stocks to trade in the day were those of Grand Harbour Marina plc and HSBC Bank Malta plc, both of which closed un­changed, at €1.980 and €2.950, respectively; both on low volume.

Weekly UK economic review

In the United Kingdom, the past week was relatively light on economic data. A second reading of Gross Domestic Product (GDP) growth for the third quarter of this year confirmed earlier estimates that the economy expanded by 0.8 per cent. Exports gave a boost to Britain’s economy during this period contributing to half of this growth. In fact, exports rose 2.2 per cent between July and September, outpacing growth in imports for the first time in two years.

While the figures suggest that a weak sterling helped boost exports, the country’s economic recovery still faces serious challenges from deep spending cuts that will start to impact from next year. Indeed, new figures on expenditure showed that household spending growth of 0.3 per cent quarter-on-quarter was down from the 0.7 per cent growth registered in the second quarter, while government spending grew by just 0.4 per cent, less than half the pace of the second quarter.

British retail sales growth accelerated in November and a survey by the Confederation of British Industry (CBI) said that retailers’ expectations held firm ahead of the crucial Christmas shopping season. In fact, the CBI’s distributive trades survey reported that the sales balance rose to a reading of +43 in November, from +36 a month earlier. In a separate report, British factory orders fell at a slower-than-expected pace in November, but manufacturers expect output growth to slow substantially in the months ahead. In fact, the CBI’s survey’s total book balance rose to a reading of -15 this month from -28 in October, above expectations of a reading of -24.

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.