Financial news

The Malta Stock Exchange index shed over 14 points, or 0.4 per cent yesterday, as banking stocks continue to trade lower. The index closed at the 3,697.376 level on volume of 66,393 shares across 49 deals.

Bank of Valletta plc shares suffered the session’s biggest loss, dropping 5c, or 1.3 per cent, to close at €3.770 in 18 deals for a total of 10,865 shares.

HSBC Bank Malta plc shares also fell, dropping 1c, or 0.3 per cent, to end the day at €3.160 on volume of 30,937 shares across 15 trades.

Malta International Airport plc stock, meanwhile, managed to finish in positive territory by gaining 1c, or 0.6 per cent, to close at €1.660 in six deals for a total of 7,191 shares.

Go plc shares finished un-changed, at €1.940, on the day, after opening 2c1 lower. Volume was light at 6,400 shares across five deals.

Shares in the Floriana-based insurer, Middlesea Insurance plc, also finished unchanged, closing at €1.000, on volume of 9,500 shares across four trades.

For the second day in a row, Maltapost plc shares ended unchanged at €1.000 in a single deal of 1,500 shares. Yesterday, the company released its full year performance results for the year ended September 31, 2010. The company registered profit before tax of €3.2 million for the year in revenue of €20.4 million versus €20.2 million for the same period ended 2009. The company also announced that it would be paying a €0.04 dividend to shareholders who are on the company’s register as of today.

Weekly UK economic review

In the United Kingdom, the manufacturing sector expanded at its fastest rate in more than 16 years during December. The forward looking indicator, Purchasing Managers’ Index (PMI) for the manufacturing sector increased to 58.3 in December from 57.5 level of the previous month. Economists were expected the index to fall to 57.2. This increase was helped by the UK’s biggest export market in the eurozone, Germany. In the meantime the British services sector, fell to contractionary territory in December due to unusually cold weather. The Purchasing Managers’ Index (PMI) for the services sector fell to 49.7, the first fall in output since April 2009 from 53 in November. This survey covers businesses making up about 40 per cent of the economy but excludes the public sector and retailers.

In the credit sector, the number of mortgage approvals for house purchases rose unexpectedly to 48,019 in November to their highest level since July from 47,315 in October. This is in contrast to economists’ expectations of a slight fall. However, November’s amount is still below the number of approvals which was registered a year ago. Meanwhile, the headline rate of money supply growth fell by a record 1.4 percent in November on the same month last year.

Finally, on a negative note, the construction sector also fell below the level of 50 which separates growth and contraction. The PMI for construction dropped to 49.1 in December, from 51.8 which was registered during the previous month, while economists were expecting this index to fall to 51.

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.