Fresh records for banks

The Malta Stock Exchange continued where it left off on Friday and for the second consecutive session, registered its biggest single day gain for the year.

Demand for HSBC Bank Malta shares remained impressively high and, with more than Lm2.5 million worth of purchase orders remaining outstanding on the market, there was no surprise that the equity traded seven per cent higher at Lm10.87,6.

Bank of Valletta immediately traded at its highest permissible level of Lm4.83,7, as several of Friday's unfilled bids in HSBC Bank Malta, were directed into this more liquid equity.

FIMBank rocketed to an all-time high of $2.30 as the company announced, during the session, a pre-tax profit of $2,942,603 for its full year ending December 31, 2005. Furthermore, the directors have recommended the payment of a scrip dividend of $0.0114 per share and a one-for-five bonus issue.

Persistent purchase orders saw Middlesea Insurance rally to a six-year high of Lm4.62 as 1,358 shares were exchanged across four trades, while Malta International Airport reversed Friday's 2c drop to close back up at Lm1.57.

Global Financial Services Group shares gained 3c or 2.3 per cent to close the session at a six-week high of Lm1.33, while renewed buying activity in International Hotel Investments helped the price improve by almost a percentage point to close at €0.959.

S. Korea eyes to relax financial regulations

Seoul plans to slash the number of regulations governing the financial sector under a sweeping new law that will enable companies to combine equities and derivatives trading with asset management and investment banking.

The Capital Market Consolidated Act will significantly liberalise the non-banking financial industry in South Korea, part of the government's plans to make Seoul a financial hub in northeast Asia.

Sharp falls in domestically-focused stocks led the Japanese market downwards yesterday.

The Topix closed 2.1 per cent lower at 1,572.11. The Nikkei 225 fell 1.8 per cent to 15,437.93. The Japanese stock market continues to be hit directly by foreign selling, and indirectly by domestic fears that as foreigners exit the market share prices will fall.

Strength in the oil sector helped the FTSE Eurofirst to reverse early weakness and inch higher by mid-morning although traders remained cautious after further attacks by militants in Nigeria pushed crude prices higher.

The FTSE Eurofirst 300 added just 0.5 points at 1,343.36 while the German Xetra Dax lost 7.7 points or 0.1 per cent at 5,787.3 and the French CAC 40 fell 19.3 points or 0.4 per cent to 4,980.7.