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03.11.2022 6 MARKETS Symbol Volume Value Trades High Low Open Closing Change Code Traded Traded Trades Price Price Price Price EQUITIES AXR 163 87.21 1 0.535 0.535 0.535 0.535 0.000 BOV 5,000 4,500.00 1 0.900 0.900 0.900 0.900 -0.005 GO 10,000 29,200.00 1 2.920 2.920 2.920 2.920 -0.040 HSB 14,840 10,981.60 2 0.740 0.740 0.740 0.740 -0.025 MDI 1,500 408.00 1 0.272 0.272 0.272 0.272 -0.068 MIA 10,000 58,000.00 2 5.800 5.800 5.800 5.800 0.000 RS2 38,400 53,009.62 5 1.390 1.380 1.380 1.380 0.000 SFC 5,045 38,089.75 2 7.550 7.550 7.550 7.550 -0.400 CORPORATE BONDS 6PM 25 5,000 5,000.00 1 100.000 100.000 100.000 100.000 -1.000 AX26A 5,000 4,999.50 1 99.990 99.990 99.990 99.990 -0.010 BD24A 60,000 61,500.00 1 102.500 102.500 102.500 102.500 0.000 CB27A 5,000 5,000.00 1 100.000 100.000 100.000 100.000 0.010 CC30A 18,000 17,829.00 1 99.050 99.050 99.050 99.050 0.000 GO31A 20,200 19,190.60 2 95.300 95.000 95.000 95.300 0.000 GP26A 5,000 4,940.00 1 98.800 98.800 98.800 98.800 0.000 HF28A 500 490.00 1 98.000 98.000 98.000 98.000 3.000 IH24A 12,000 12,180.00 2 101.500 101.500 101.500 101.500 0.500 IZ29A 800 800.00 1 100.000 100.000 100.000 100.000 -1.000 MD26A 18,000 18,000.00 1 100.000 100.000 100.000 100.000 0.000 Malta Stock Exchange Regulated Main Market Trading Date: 2 Nov 2022 Markets recover following Rishi Sunak's ascension to premiership JAMES CUMMINGS MARKETS have reacted pos- itively to news of Rishi Sunak's victory in the UK Conservative Party leadership contest, though analysts remain cautious On 25 October, former Chan- cellor Rishi Sunak was formal- ly declared Prime Minister of the United Kingdom following Liz Truss' resignation after less than two months in the job. Her term in office — the shortest yet in UK history — was one char- acterised by severe economic downturn and market instabil- ity following her flagship eco- nomic policies laid out as part of the government's so-called 'mini-budget'. Markets tumbled after Truss' economic plan — one that in- cluded a series of tax cuts for businesses and high-net- worth individuals (HNWIs) — foundered in the wake of widespread scepticism from in- vestors, with financial analysts questioning how the govern- ment was planning to afford the cuts amid a weakened currency, high inflation and an already substantial deficit. Truss' replacement of Chan- cellor Kwasi Kwarteng with vet- eran Tory Jeremy Hunt, while seen as a step in the right di- rection, was insufficient to save her premiership, leading to her resignation less than a week lat- er. The ascension of Rishi Sunak to the UK's top role in govern- ment has been seen, by contrast, as a steadying hand at the wheel, with many noting the new PM's disavowing of Lizz Truss' eco- nomic views long before their implementation. During the Conservative Party leadership contest, Sunak was direct in his scepticism of Truss' economic plans, saying "Borrowing your way out of inflation isn't a plan - it's a fairytale." However, despite a degree of renewed confidence, Sunak faces a tough challenge ahead, with the UK still grappling to deal with substantial pre-ex- isting economic difficulties — some now exacerbated by Truss' premiership. Admitting that "mistakes were made" dur- ing the last administration, in his first speech as PM Sunak promised to focus on "economic stability and confidence", with Britain's economy his primary concern. Amidst the wide range of chal- lenges facing the UK economy, some of the most pressing in- clude the staggering rise in ener- gy prices facing UK consumers, as well as rising food prices and mortgage rates. The country's bleak economic outlook has prompted the Bank of England to forecast that the UK will en- ter recession in Q4 of 2022, and is expected to last over a year. Following Sunak's appoint- ment, the value of the pound re- bounded significantly, up 1.77% against the dollar at 1.148 and 0.79% against the euro at 1.151. This has had some negative impacts on UK markets, how- ever, with the pound's renewed strength affecting the perfor- mance of the FTSE 100 due to the index's reliance on earnings generated outside the UK. Su- nak's ascension to PM has also led to some improvement in UK Government borrowing costs, with yields on long-term gilts eased. While recent improvements have given cause for optimism in London, the UK's economic outlook remains uncertain, with analysts citing the prolonged difficulties caused by Brexit and the ongoing disputes surround- ing the Northern Ireland Proto- col, as well as internal challeng- es including strikes by transport and postal workers. There also remains the diffi- cult question of how the new Prime Minister is going to ap- proach balancing the country's budget, with likely cuts to pub- lic services and a backtrack- ing on environmental commit- ments feared by trade unions and NGOs across the UK. Nonetheless, general consen- sus seems to suggest that Rishi Sunak's appointment as Prime Minister is a positive step for the country, despite calls for a gen- eral election from opposition parties and even some members of the ruling Conservative Party. Indeed, this issue may not easily go away, with Rishi Sunak be- ing the second unelected Prime Minister since Boris Johnson's landslide victory in December 2019. Clearly, much will depend on the performance of Sunak's government — both politically and, more pressingly, economi- cally. HF28A - 3.85% HLF UNSEC

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