Financial News

After three weeks of consecutive gains, equities seem to have lost steam during yesterday's session on the Malta Stock Exchange as investors opted to take profits out of the recent rally. As a consequence the Malta Stock Exchange Index failed to break through the 4,000 mark, closing 0.3 per cent lower, at 3,971 points.

Maltacom shares were the main drag on the index, falling by 5.7 per cent or 8c9, to Lm1.48. In view of any further information on the privatisation process, investors opted to play it safe and cash in recent gains.

Also in negative territory ended shares in Bank of Valletta which lost almost one per cent to Lm5.45. Activity was largely fragmented and consisted of an aggregate 4,570 shares which were traded across 16 deals.

On an opposite note finished shares in HSBC Bank Malta which pushed forward by another 1.7 per cent to Lm6.48,9, after touching an all-time high of Lm6.50 during the opening minutes.

In the rest of the banking sector, shares of Lombard Bank and FIMBank both consolidated themselves at previous closing levels, with activity remaining significantly subdued. Other trades for the day were executed in Malta International Airport, Plaza Centres and Simonds Farsons Cisk.

In the fixed income market activity was limited to two corporate issues and five government stock, with marginal changes in prices, except for the 8.25 per cent Suncrest Hotels 2007 which lost a full percentage point to Lm96.

Japanese stocks continue post-election gains

By the close, the Dow Jones Industrial Average rose fractionally to 10,682.94. The S&P 500 slipped a fraction of a point to 1,240.57, and the Nasdaq Composite rose 7.3 points, or 0.3 per cent, to 2,182.83.

London equities markets moved off year highs in uncertain trade yesterday as gains for insurers were offset by losses among oil heavyweights as crude prices continued to fall and medical devices maker Smith & Nephew warned of weaker sales. The FTSE 100 lost 0.7 per cent to 5,338.6 and the mid-cap FTSE 250 fell 0.6 per cent to 7,856.2.

European equities were lower yesterday, as insurers faced downgrades from ratings agency Standard and Poor's, and as heavily-weighted energy stocks fell following a dip in oil prices. By mid-morning the decline had gathered pace, with the FTSE Eurofirst 300 down 0.7 per cent to 1,201.48, while Frankfurt's Xetra Dax fell 1.2 per cent to 4,929.22. In Paris, the CAC-40 shed 0.6 per cent to 4,463.67.

Japan's Topix stock index climbed 0.5 per cent to a four-year closing high of 1,315.76 yesterday, as investors continued to buy shares in reaction to the Liberal Democratic party's weekend election victory. The Nikkei 225 closed just 0.04 per cent higher at 12,901.95. However, most analysts prefer the Topix as an overall indicator of the Japanese stock market.