Financial news

The MSE Index lost 0.4 per cent to close at 4,667 points during yesterday's trading session at the Malta Stock Exchange, with activity in the equity market consisting of 41 deals. This drop is the result of a downbeat performance in the largest local equity by market capitalisation.

Buying interest in Bank of Valletta translated into the day's only positive close, with 2,390 shares carrying a market consideration of €13,931 being exchanged across six trades. The equity started the session on negative footing, only to regain lost ground, and close the day at €5.849 or 0.2 per cent higher.

Maltapost continued to be the most active equity in the local market with a total of 84,019 shares being traded over 16 transactions. Trading started well into the session and closed at €0.69, 1c or 1.4 per cent lower than the previous close. This was the highest percentage decrease of the session.

Trading in HSBC Bank Malta was made up of 3,500 shares being traded over four deals which resulted in a 5c or 1.1 per cent loss over the previous reading. This decline was somewhat expected given that the equity commenced trading "ex-dividend". In effect, all investors purchasing shares during yesterday's session did so without the right to receive a final gross dividend of €0.148.

Interest in Malta International Airport to the tune of 26,830 shares swapped hands at the price of €3.21.

FIMBank failed to move as it closed unchanged at the $2 level, with a total of 41,000 shares exchanged across seven deals. Similarly, a sole trade of 6,000 shares in Crimsonwing also saw the price unaffected.

UK economic review - weekly round-up

Last week's minutes from the BOE's February monetary policy meeting echoed the reading on the Inflation Report in warning markets not to expect dramatic and rapid easing. This stance was further reaffirmed by the rebound in January retail sales which, taken at face value, suggests that the consumer has yet to falter in the face of tightening credit conditions and a deteriorating housing market.

Retail sales jumped 0.8 per cent month on month last month with December's 0.4 per cent month on month fall revised up to a 0.2 per cent drop instead. It is misleading though to explain the increase purely in terms of "spending-happiness", as aggressive discounting was also part of the story. Retailers cut their prices by 1.2 per cent relative to the average price tag a year earlier. Moreover, there may have also been some problems with seasonally adjusting the figures, as retailers worried about the footfall and the state of the household sector, started sales earlier in December and went on longer in January than last year.

In a separate release, the public sector net borrowing showed that the UK public finances are in better shape than many would have thought. Receipts typically outstrip spending in January, one of the biggest months for taxes on company profits and personal incomes, including year-end bonuses. However, the surplus in January was significantly ahead of expectations at £14.1 billion, the highest since records began in 1993 and up from £11.8 billion a year earlier.

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.