Massive creation of wealth

The MSE index registered its biggest single-day gain for the year during yesterday's trading session at the Malta Stock Exchange as results posted by HSBC Bank Malta sparked an even great buying frenzy.

Demand for HSBC Bank Malta rocketed. The day's trades amounted to just 1,100 shares which were exchanged across 18 transactions pushing the price up Lm0.66,5 or seven per cent to an all time high of Lm10.16,5.

Bank of Valletta shares gained 7c5 to close at a record Lm4.57,5, as 91,135 shares were exchanged across 120 trades. Lombard Bank soared 56c or 6.2 per cent as 1,133 shares were purchased across eight transactions, wiping off all supply on the board and helping the price close at an all time high of Lm9.56.

Two investors swapped 7,000 shares of FIM Bank at a slightly higher premium than Thursday's close at the $2.201 level.

The day's top gainer was Simonds Farsons Cisk which rallied by as much as 8.3 per cent to Lm0.89,9, while to the contrary International Hotel Investments slumped 4.9 per cent to €0.95 on a single deal of merely 80 shares.

Malta International Airport and Middlesea Insurance moved in opposite directions by the same monetary amount. MIA shares declined two cents on 16,265 shares traded, while Middlesea closed at Lm4.50 on turnover of 593 shares.

Elsewhere in the market, Global Financial Services Group gained a penny to reclaim the Lm1.30 for the first time in five weeks.

Bourses extend 4 1/2-year highs

Europe's bourses edged higher, extending long-term highs, as broker upgrades and Wall Street's positive finish along with the cost of oil remaining weaker at below $59 a barrel helped sentiment. The FTSE Eurofirst 300 added 0.2 per cent to 1,241.11 with the CAC-40 in Paris 0.1 per cent ahead at 4,977.14 and the Xetra Dax in Frankfurt added 0.1 per cent to 5,792.24.

Overnight on Wall Street, the Dow Jones Industrial Average touched its highest level since June 2001, rising 0.6 per cent to 11,120.68. The S&P 500, buoyed by gains in the energy sector, advanced 0.7 per cent to 1,289.63. The Nasdaq Composite closed 0.8 per cent higher at 2,294.63. London's leading equities climbed to a fresh four-and-a-half year high yesterday as a strong overnight showing on Wall Street offset weakness in media stocks. The FTSE 100 was up 0.2 per cent at 5,838.3 while the mid-cap FTSE 250 was 0.1 per cent higher at 9,385.8, yet another all-time record.

The Nikkei 225 fell 2.1 per cent to a three-week low of 15,713.45, despite being pushed up briefly by strong gross domestic product figures. The fall was led by real estate stocks, which plummeted as foreigners - big buyers within the sector - continued to exit the Japanese market. The Topix fell 1.6 per cent to 1,605.33. Toyota, Japan's biggest carmaker, rose 1.6 per cent to Y6,420. Honda climbed 0.9 per cent to Y6,890.

The financial news was compiled by Valletta Fund Management (tel. 8007 2344) and BOV Stockbrokers Ltd (2275 1732).