Financial News

Trading in equities remained vibrant during the final session of the week at the Malta Stock Exchange, with prices moving generally higher as buyers outweighed sellers in determination.

Simonds Farsons Cisk was the day's top gainer as the equity jumped 6.9 per cent to reclaim the Lm0.86,6 level. The day's activity amounted to 2,800 shares which were exchanged across two transactions, leaving a further 1,800 shares outstanding on the bid side at Lm0.86,6 against supply of 2,500 shares at Lm0.90.

Activity in Maltacom shares dwindled sharply compared to previous sessions. A mere 5,400 shares were exchanged during the session, pushing the price higher by a penny to close at Lm1.91. Typically, the biggest action was in Bank of Valletta where a grand total of 19,766 shares were exchanged across 54 transactions. The equity rallied all the way up to the Lm7.48 level before sellers came to the fray squeezing the price down to Lm7.42. Investors are looking forward to next week, when the market should experience even greater liquidity following the one-for-one bonus issue.

HSBC Bank Malta barely managed to pull away from the Lm8 level as 1,920 were exchanged across eight transactions. Investors remain cautiously optimistic about the upcoming full year results which are due out in a few weeks time.

Elsewhere in the market, trades in Malta International Airport and Middle Sea Insurance did not affect their previous closing prices of Lm1.55 and Lm4 respectively.

Tech rises lead slight gains in Tokyo shares

Falls in Japanese carmakers and banks offset strong rises in some technology shares yesterday, leaving the Nikkei 225 up only 0.1 per cent and the Topix down 0.2 per cent. The technology sector was boosted by steep rises among a handful of big companies benefiting from strong corporate announcements earlier in the week.

European equity markets fell after a weak session on Wall Street, with heavily weighted oil stocks and financial groups leading the declines. By midday, the FTSE Eurofirst 300 was down 0.7 per cent to 1,303.22, while Frankfurt's Xetra Dax was off 1.1 per cent to 5,484.10. In Paris, the CAC 40 shed one per cent to 4,843.71, and London's FTSE 100 lost 0.6 per cent to 5,702.2.

Eon, the German power group, has restructured and finalised a deal with Mol, Hungary's leading energy company, that will make Hungary its regional hub. The companies announced that Eon will purchase 100 per cent of Mol's gas trading and storage units and Mol's 50 per cent stake in gas importer Panrusgaz for €450 million. Eon will also assume €600 million in debt. A closing date was set for March 31.

London equity markets lost ground as a broker downgrade added to the woes of the telecom sector and fears of a price war hit food retailers. Vodafone Group fell 1.8 per cent at 126 and a half pence after Bear Stearns downgraded the European telecommunications sector.

Wall Street looked set to nudge higher as positive economic data helped ease investor concern over earnings warnings from Tyco and Lucent Technology. Half an hour before trading starts, US stock futures were broadly lower but a fair value comparison suggested a slightly higher opening.