Equities moved sideways during yesterday's trading session at the Malta Stock Exchange as investors pondered the direction of the market, following its recent volatility.

International Hotel Investments climbed 4.2 per cent to the one euro level on sustained buying activity which saw a total of 45,530 shares being purchased across 20 transactions.

This is the highest level the shares have traded at since December 2001, as well as the level at which the company made its initial public offering in June 2000.

Among banking sector equities, Lombard Bank was the biggest loser as the equity gave back all of its previous session's gains when a mere 50 shares were exchanged across a single trade at the Lm8.75 level.

HSBC Bank Malta traded within a very thin trade range although selling activity forced the price to close lower by the slimmest of margins at Lm8.99,9.

Bank of Valletta closed the day unchanged at Lm3.90 although as the day's activity of 61,493 shares was negotiated, the equity briefly touched Lm3.95.

Maltacom declined 1c5 or 0.7 per cent to Lm2.18,5 as investors decided to book profits following the recent rally in price, while Malta International Airport ticked higher by a single notch to reclaim the Lm1.59 level.

Elsewhere in the market, Middlesea Insurance and Simonds Farsons Cisk traded unchanged at Lm4.20 and Lm0.85 respectively.

Japan's Nikkei 225 hits highest level in five years

Rebounds in both export and domestic shares pushed up the Japanese stock market yesterday. The Nikkei 225 closed up 1.4 per cent to 16,700, reaching its highest level in five years. The Topix rose one per cent to 1,711.02. Investors at last rewarded domestic stocks for some strong economic data earlier in the week by pushing up domestic sectors across the board.

Seven & I, the holding company for the Ito-Yokado department stores and Seven-Eleven Japan convenience stores, gained 2.7 per cent to Y5,020. Export stocks were helped higher by a rise in the dollar to near a seven-week high - although Wednesday's strong dollar had failed to stem a fall in stocks. Honda was up 2.5 per cent to Y6,870, with fellow carmaker Nissan up 0.9 per cent to Y1,305. Toyota, Japan's biggest carmaker, managed a more modest 0.8 per cent rise to Y6,110.

European equity markets fell back by mid-morning yesterday as falling crude prices and disappointing news on the replacement of reserves for Royal Dutch Shell hit oil stocks. After early gains, the FTSE Eurofirst 300 turned 0.2 per cent lower to 1,331, while Frankfurt's Xetra Dax was flat at 5,726.97. In Paris, the CAC 40 shed 0.3 per cent to 4,984.54 and London's FTSE 100 fell 0.2 per cent to 5,791.3.

In New York overnight, the Dow Jones Industrial Average gained 0.8 per cent to 10,953.95 in a choppy session, driven by fluctuations in the price of oil. The Nasdaq Composite added 0.2 per cent to 2,310.56.