Market bounces back

The equity market rebound yesterday as investors bought into companies whose share price had been battered following last weeks' sell-off.

Malta International Airport was the day's top gainer as the equity rallied as much as 8.1 per cent to close at the Lm1.60 level on increased buying activity.

HSBC Bank Malta managed to reclaim the Lm10 level. The day's trades amounted to 142, whereby 35,104 shares were exchanged, pushing the price 20c or two per cent higher. Elsewhere, Lombard Bank recouped 15c or 1.4 per cent as 1,264 shares were purchased across six trades to close back at its historical high of Lm10.50.

Bank of Valletta plummeted all the way down to Lm4.10 as investors immediate offloaded shares. However, once the sellers petered out, buyers appeared and they climbed back up to Lm4.33,9.

The day's most liquid equity was FIMBank where 397,702 shares exchanged hands across 23 trades. The equity dropped six per cent down to $2.35 on profit taking.

Maltacom notched higher by a single penny on 5,127 shares which were exchanged across nine transactions.

Selling activity floored the price of International Hotel Investments which fell in excess of eight per cent to close at €0.90. Global Financial Services Group declined 9c1 or 6.5 per cent as 710 shares were sold across four transactions.

Plaza Centres and Datatrak Holdings dropped a penny to close at Lm0.69 and Lm0.30 respectively, while two investors swapped 500 shares of Simonds Farsons Cisk at the Lm0.88,9 level.

Nikkei boosted by banking and steel gains

Gains among banking and steel shares boosted the Japanese stock market yesterday, countering falls in the real estate sector. The Nikkei 225 rose 0.6 per cent to close at 16,192.95, with the Topix also up 0.6 per cent to 1,656.82.

Steel stocks rose strongly, boosted by expectations of high earnings this year. Nippon Steel jumped 5.2 per cent to €465. Sumitomo Metal Industries was up 3.6 per cent to €520, with JFE rising 3.8 per cent to €4,420.

European markets dipped into negative territory as Suez and Gaz de France detailed their planned merger, the latest development in the saga of utility sector consolidation. The FTSE Eurofirst 300 was down 0.1 per cent to 1,359.05, weighed down by the French CAC index, which slipped 0.3 per cent to 5,059.70. The Xetra Dax was up 0.1 per cent to 5,877.35, while the FTSE 100 in London added 0.2 per cent to 5,871.7.

London equities hit a fresh multi-year high yesterday as strong results from Hammerson helped offset a disappointing trading update from Vodafone Group. Vodafone, among the worst performing blue-chip stocks last year, was the biggest FTSE 100 faller, down 2.8 per cent to 113 and a half pence, while other telecoms moved lower in sympathy. Cable & Wireless fell 1.6 per cent to 107 and a half pence and BT Group was 1.2 per cent lower at 208 and a half pence.

Hammerson, the property group, led the senior gainers, rising six per cent to £11.67 as it reported a better-than-expected jump in profits and net asset value.

Valletta Fund Management and BOV Stockbrokers