Financial news

The Malta Stock Exchange Index yesterday gained back the three points it lost in Wednesday’s session to close at the 3,469.364 level on thin trading of 24,877 shares in 30 deals across four equities.

Most of yesterday’s trading was centred around financial services stocks, with the two large retail banks witnessing additions in their market capitalisations. Bank of Valletta plc shares gained a marginal 0c1, or less than 0.1 per cent, to close at €3.700 in moderate volume of 13,077 shares across 19 deals. HSBC Bank Malta plc, meanwhile, gained 1c, or 0.4 per cent, to close at €2.900 in light volume of 7,800 shares across eight deals.

Middlesea Insurance plc shares moved in contrast, dropping 0c2, or 0.2 per cent, in a single deal of 2,000 shares.

The only other shares to trade in the session were those of Go plc, which closed unchanged, at €1.900 in two trades for a total of 2,000 shares.

Trading in the corporate bond market was relatively light as trading of €230,259 nominal across 27 deals took place. Trading finished mixed as four of the 13 bonds to trade in the session finished higher while five closed lower. The bond having the best performance in the session was the 6.8% Premier Capital plc € Bond 2017-2020 issue, which gained €1.00, or one per cent, to close at €104.00 in a single trade of €8,200 nominal. The bond suffering the biggest loss was the 7% FIMBank plc EUR 2012-2019 issue, which dropped €1.19, or 1.2 per cent, to close at €101.80 on volume of €14,000 nominal across three deals.

Weekly UK economic review

In the United Kingdom, the past week was relatively light on economic data. The data from the manufacturing showed an increase in activity. The Purchasing Managers’ Index (PMI) increased to a reading of 58.0 in November, above the 54.7 which was expected. This reading was also the fastest increase in 16 years and was mainly attributed to higher export demand which is being supported by a weaker sterling. Also on a positive note, the PMI for the construction sector increased to a level of 51.8 in November from the previous level of 51.6 during the previous month. Analysts were expecting this index to fall to a reading of 51.3. A reading above 50 in these sectors indicates growth.

Meanwhile, a separate report showed that mortgage approvals fell to 47,185 loans to buy homes in October from 47,369 approvals which were registered during the previous month.

This was the lowest level which was registered during the past eight months, while economists were expecting loans to fall to a level of 47,000. Also in the housing sector, according to a report measuring house prices compiled by Nationwide Building Society, the average cost of homes dropped by 0.3 per cent from October when they fell by 0.7 per cent. From a year earlier, prices increased by 0.4 per cent, lower than economists expectation of an increase of 0.5 per cent. Finally, a measure of consumer confidence fell to a reading of negative 21 in November, much lower than the minus 19 reading of the previous month.

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.