Financial News

Buying activity in the local market remained resilient, notwithstanding the fact that most equities are trading at historical highs, as expectations remained buoyant.

Typically banking sector equities led the way higher, particularly with FIMBank climbing 3.3 per cent to close at its all time high of $2.15. The day's activity consisted in 8,500 shares which were exchanged across five transactions leaving a further 3,700 shares unsatisfied at this level.

Bank of Valletta too rallied to a historical high of Lm4.15 on sustained buying activity. The day's turnover amounted to 48,135 shares which were exchanged across 83 trades. Soon after the session's opening, the equity quickly climbed 5c although late in the session a few sellers returned to the market, bringing the price back down to Lm4.10. However, in the final 10 minutes, the morning's gain was restored as a few remaining buy orders were completed.

Lombard Bank reclaimed the Lm9 level as 1,011 shares were exchanged across two transactions. Elsewhere, trading in HSBC Bank Malta did not alter its previous closing price of Lm8.95.

A 5c or 1.2 per cent gain was registered by Middlesea Insurance as a total of 2,550 shares were purchased across eight trades pushing the price up to Lm4.30.

International Hotel Investments maintained its positive run, gaining 0.9 per cent to close the session at €1.019 while buying activity in Maltacom shares found strong resistance at Lm2.20.

GlaxoSmithKline 4Q profit up 45 per cent

Pharmaceutical company Glaxo SmithKline PLC reported yesterday its fourth-quarter profit rose 45 per cent and said it expects sales growth of its key drugs to continue this year.

Glaxo, the world's second-largest pharmaceutical company after Pfizer Inc., said net profit for the three months to December 31, 2005, was £1.12 billion ($1.96 billion), up from £774 million a year ago. Revenue rose 13 per cent to £5.91 billion ($10.33 billion). Telecom-equipment maker Nortel Networks Corp. said it has reached a tentative agreement to pay $2.47 billion in cash and stock to settle two shareholder class-action lawsuits over the company's accounting scandal.

Nortel, which has been working to recover from the scandal that forced it to restate previous financial results and terminate several senior executives, said it wants avoid being tied up in prolonged litigation. Shareholders filed numerous lawsuits against Nortel for allegedly violating US and Canadian securities laws after it issued revised financial expectations for the 2001 fiscal year.

US stocks traded higher yesterday on Cisco Systems' earnings results and Pfizer Inc.'s plan to sell a division.

The Dow Jones industrial average is up 0.32 of a point, the S&P 500 is ahead 2.26 points and the Nasdaq 100 is up 14.05 points.

PepsiCo Inc., the world's second-largest soft-drink maker, reported fourth-quarter earnings rose 13 per cent as the company benefited from an extra selling week in the quarter and sales growth across its Frito-Lay, Quaker Foods and beverage operations.

Cigarette maker Reynolds American Inc. said yesterday its fourth-quarter income jumped compared with year-ago results that were hurt by charges.