The Malta Stock Exchange Index gained just under four points, or 0.1 per cent yesterday, as trading volumes picked up from Wednesday’s levels. The index closed at the 3,344.558 level as 96,878 shares traded across 28 deals.
The company which managed the best performance in the day was Malta International Airport plc, whose shares gained 4c, or 2.6 per cent, to close at €1.600 in five deals for 15,220 shares.
Banking sector shares finished mixed at the close of the session. Lombard Bank Malta plc shares fell 5c, or 1.9 per cent, to close at €2.600 on light volume, while Bank of Valletta plc stock closed higher, finishing at €3.230, up 1c or 0.3 per cent, in 12 deals for a total of 23,722 shares. BOV shares traded lower for most of the session yet managed to climb back into positive territory late in the day.
HSBC Bank Malta plc shares, meanwhile, closed marginally down, dropping 0c1, or less than 0.1 per cent, to end at €2.794 on volume of 13,880 shares across nine deals. Other shares to trade in the day yet failed to see a change in their closing price were Crimsonwing plc, Go plc and International Hotel Investments plc, which closed at €0.350, €1.860 and €0.800, respectively. Trading volumes for the three issued were relatively robust at 16,100, 17,216 and 24,500 shares respectively.
Weekly UK economic review
In the United Kingdom, the Bank of England’s minutes of the October meeting showed that the Monetary Policy Committee, led by Governer Mervyn King was split in three ways. The majority of members voted to keep the benchmark interest rate at 0.5 per cent and the bond-purchase plan at £200 billion, one member pushed for an increase in the benchmark interest rate to 0.75 per cent, while another member voted to increase the asset purchase plan by £50 billion. The governor said that inflation pressures remain subdued, signalling that he may be open to step up the bond purchase programme.
In the meantime, Finance Minister George Osborne announced the deep spending cuts to tackle the record £154.7 billion deficit. The government has targeted a total of £83 billion of savings, of which £30 billion were announced in June. The coalition’s plans envisage shedding 490,000 public sector jobs over four years, from a total of around six million. Some of the biggest cuts are in welfare, which accounts for around a third of government spending. Child benefit will be cut for many higher earners and raising the state pension age is also expected to save over £5 billion a year.
A separate report showed that Britain reported the largest budget deficit for any September since modern records began in 1993. According to the National Statistics Office, net borrowing in September was £15.6 billion, much higher than the £14.5 billion which was expected and the £14.2 billion which was registered the previous month. This reinforces the view that the government needs to stick to its fiscal-consolidation programme. Finally, also on a negative note, retail sales dropped by 0.2 per cent in September, where economists were expecting an increase of 0.3 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.