Selling activity in the five of the six largest equities on the Malta Stock Exchange dragged the Index lower by 1.9 per cent to 3,546 points, its lowest reading since August 2005. On the contrary, the longest dated bond moved higher as investors preferred the safety of government stocks.
FIMBank was the day's biggest loser with the trade finance specialist declining almost five per cent as 2,000 shares were sold in a single deal at the $1.69 level, its lowest level this year. At the end of the session a further 20,190 shares remained outstanding on the offer side against demand for 1,403 shares best bid at $1.40.
Bank of Valletta dropped 16c or 4.1 per cent as 15,819 shares were sold across 14 transactions squeezing the price down to the €3.74 level, its lowest closing price in more than four years. The bank is due to report its full year results towards the end of the current month.
HSBC Bank Malta shareholders saw €23.3 million worth of market capitalisation eroded of their collective statements as 23,665 shares, carrying a market consideration of €69,106, were sold across 22 transactions down to the €2.90 level.
International Hotel Investments was the day's most liquid equity with a grand total of 81,533 shares changing hands over seven deals. The equity closed below its equivalent June 2000 initial public offer price, at €0.996.
A single deal in Malta International Airport, the fifth largest equity on the Malta Stock Exchange, saw two investors swap 5,000 shares at the €2.90 level, which represents a 3c or one per cent discount to its previous closing price.
Elsewhere Go and Grand Harbour Marina traded unchanged, both at €2.20, while a single large order in MaltaPost was also struck at its previous closing price of €0.82. Plaza Centres completed the day's activity when 1,000 shares were exchanged at €1.75.
Weekly UK economic review
In an unprecedented coordinated effort, the Bank of England along with five other central banks lowered interest rates by 0.5 per cent to ease the economic effects of the worst financial crisis since the Great Depression.
Meanwhile, the release of economic data in the UK was no better than the releases observed in other major economies. The composite index, which reflects the state of both the service and manufacturing sectors, tumbled to 44.6, the lowest reading since the series began in 1998. The only silver lining was that inflation pressure continued to subside.
Gross Domestic Product (GDP) shrank 0.2 per cent in the three months through September, the first contraction for a calendar quarter since 1992.
Elsewhere, the Bank of England reported that housing equity withdrawal turned negative for the first time in a decade during the second quarter of this year. This implies that households are borrowing less than housing investment, that is, housing equity is being built.
On the activity front, UK factory production contracted for a sixth month in August in the worst streak for almost three decades. UK services also contracted in September bringing the British economy closer to a recession.
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.