Financial News
Twelfth consecutive gain for index
Consolidation remained the theme of the day on the equity market as commercial banking shares continued to trade close to their all-time highs. Activity remained particularly low as investors deserted the market in view of the long weekend stretch.
The Malta Stock Exchange index wrapped up the week with a further 0.3 per cent gain to 4,609 points. This is the highest ever close for the index which has increased over the past 12 sessions.
Bank of Valletta was the most active traded equity with an aggregate 13,052 shares struck across 36 deals. The share price appreciated by one cent to Lm7.06 after touching an intra-day record high of Lm7.06,2. At yesterday's close, the best bid on the market stood at Lm7.06 while the minimum offers were quoted at Lm7.10. Shares of Lombard Bank also rallied to their all-time high, closing the session at Lm7.20. A single deal was executed for a mere 400 shares. Meanwhile, shares in the other commercial bank, HSBC Bank Malta, closed just shy of its all-time high of Lm7.15,1. Trading consisted of 2,806 shares which were struck across 12 deals between a narrow range of Lm7.14,5 and Lm7.14,9.
In the other trades for the day, Global Financial Services Group eased by five cents or four per cent, to Lm1.20, while activity in Malta International Airport consisted of 6,900 shares which were traded across five transactions without affecting the previous closing price of Lm1.53,1.
Tokyo shares rebound as banks gain ground
Gains in domestically focused banking and securities sectors pushed up Japan's stock market yesterday. The Nikkei 225 rose 1.5 per cent, while the Topix was up 1.4 per cent.
Phoenix Capital, the Japanese private equity fund, has sold its entire $1.2 billion stake in Mitsubishi Motors to JP Morgan, the US investment bank, which offloaded it almost immediately to a group of 12 hedge funds and institutional investors.
Chipmakers fell victim to the old market adage "buy on the rumour, sell on the news" on Thursday after a rosy mid-quarter update from Texas Instruments prompted more sell-offs in the semiconductor sector. Texas, the second-largest US chipmaker behind Intel, fell 2.8 per cent to $32.63 after it increased the low end of its fourth-quarter earnings and revenue forecast. The fall in Texas shares was largely expected. European bourses were weaker yesterday after Wall Street retreated as the price of US crude oil climbed past $61.
On Thursday, the FTSE Eurofirst 300 closed up 0.1 per cent, with shares recovering the day's earlier losses as Wall Street turned positive by the close of European markets and higher oil prices boosted heavyweight oil shares.
London's equity market lost ground yesterday as shares in troubled contract caterer Compass came under pressure. Compass is facing multiple legal problems into alleged corrupt buying practices at the United Nations. Its problems depended further on news an influential US congressional committee had called for further investigation of the allegations against the company. Compass shares were down 1.6 per cent to 210p.