Financial news

Yesterday, the Malta Stock Exchange Index lost some of its recent steam, yet still managed to end another session in positive territory as trading was relatively heavy. Volume registered at 389,732 shares across 76 deals, as the index ended the day up seven points, or 0.2 per cent, to close at 3,845.024.

Whereas shares of the large retail banks had been the market darlings of late, they finished mixed yesterday, despite trading volumes remaining robust.

HSBC Bank Malta plc shares while opening 3c higher at the market open, ended the session unchanged at €3.500 in 17 deals for a total of 30,125 shares.

Bank of Valletta plc shares, meanwhile, closed 4c8, or 1.5 per cent lower and closed at €3.151 on 29,848 shares across 33 deals.

FIMBank plc managed a positive performance on the day, partially recouping Wednesday’s 3.2 per cent loss by gaining 2c, or 2.2 per cent, to close at US$0.940 in two trades for a total of 50,000 shares.

Still in the financial services sector, Middlesea Insurance plc added 1c5, or 1.5 per cent, to finish at €1.015 on volume of 12,930 shares across three deals.

The equity of International Hotel Investments plc was the heaviest traded issue on the day as 247,029 shares exchanged hands across 14 deals. Investors pushed the share price up 3c1, or 3.4 per cent, to have the stock end the day at €0.951.

Suffering the day’s worst performance were the shares of Island Hotels Group Holdings plc, which fell 9c, or 9.1 per cent, to close at €0.900 in a single trade of 1,000 shares.

Other issues to trade in the day, yet finished unchanged, where those of Go plc and Plaza Centres plc, which closed at €1.940 and €1.690, respectively, on relatively low volumes.

Weekly UK economic review

In the United Kingdom, the Bank of England kept its interest rates at a record low of 0.5 per cent and as expected made no change to the £200 billion of quantitative easing asset purchases. The manufacturing sector expanded for the seventh consecutive month.

Manufacturing production increased by a more than forecast 0.6 per cent during November from the previous month when it also increased by the same rate. However, the wider measure of industrial production rose by 0.4 per cent in November after declining by 0.1 per cent in the previous month. Economists were expecting production to rise by 0.5 per cent. As a result industrial production rose by 3.3 per cent in November. This was the slowest annual pace in four months, mainly due to deterioration in the oil and gas sector.

Meanwhile, another report showed that the total trade gap deteriorated in November as the trade deficit – including both goods and services – increased to £4.123 billion from £4.038 billion.

This was the highest level since August 2010 and was mainly due to a deterioration in the trade gap, which widened to £8.74 billion in November, the biggest deficit since monthly records began in January 1980. However, the underlying deficit which excludes items such as oil and aircraft, narrowed from October’s record high. This improvement was driven by a sharp rise in car exports.

Finally, data from the housing sector showed that house prices continued to deteriorate during the final month of last year. House prices as measured by Halifax fell by 1.3 per cent in December from the previous month, when they registered a decline of 0.2 per cent.

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.