Financial News

Investors continued to purchase equities during yesterday's trading session at the Malta Stock Exchange, although a sharp decline in Bank of Valletta dropped the index into negative territory.

Middlesea Insurance was the day's top gainer as the equity rallied 4.6 per cent to close at Lm4.97, just a whisker away from its all-time high of Lm5 reached in January 2000.

Similarly, Lombard Bank continued to rise on low volume. The equity touched a historical high of Lm11.75 as 1,211 shares were exchanged across seven transactions.

HSBC Bank Malta had a volatile session, although in the end buyers got the upper hand and the equity closed up a penny at Lm10.96.

Trading in Bank of Valletta commenced on a bullish note as the equity immediately rose 5c to trade at Lm4.65. However, as the session progressed sellers came to the fray and in the final minute of the session dropped the price down by 20c or 4.4 per cent to Lm4.40.

Maltacom gained for the fourth consecutive session, this time climbing 7c to close the day at Lm2.12. Malta International Airport gained 2c or 1.3 per cent as 24,484 shares where purchased across 18 trades pushing the price up to Lm1.59.

Buying activity in Global Financial Services Group helped the price climb to its highest level since September 2001. The day's activity consisted in 4,723 shares which were exchanged across 10 trades, with the price closing at Lm1.42.

The day's biggest loser was International Hotel Investments which declined 5.3 per cent to €0.90 on sustained selling activity.

Nikkei depressed by sharp drops in steel stocks

The Japanese stock market finished a touch lower yesterday, depressed by sharp plunges in steel stocks and a moderate decline among some domestically-focused sectors. The Nikkei 225 finished 0.3 per cent lower at 15,909.76. The Topix dropped 0.2 per cent at 1,632.24.

JFE, the steelmaker, dropped 3.7 per cent to Y4,180 after cutting its earnings estimates for the current year. The news pushed down Nippon Steel, Japan's largest steelmaker, by four per cent to Y453. Sumitomo Metal Industries fell 2.5 per cent to Y500.

Europe's bourses clambered back into break-even territory after eurozone rates were increased to 2.5 per cent, leaving weak banks and autos offsetting positive numbers from Deutsche Telekom and luxury goods group LVMH yesterday. The FTSE Eurofirst 300 recovered to sit flat at 1,355.74 just after the rate decision. The Xetra Dax in Frankfurt was down 0.1 per cent to 5,861.69, the CAC-40 in Paris 0.1 per cent ahead at 5,060.47 while the FTSE 100 was 0.4 per cent to the good at 5,864.70.

Aviva shares surged ahead as equity markets moved within touching distance of a near-five year high. Aviva, the UK's largest life insurer, gained three per cent at 815p after profits came in ahead of analysts' expectations and it pledged to pay a higher dividend.

Overnight on Wall Street, the Dow Jones Industrial Average closed 0.6 per cent higher at 11,053.53 while the Nasdaq Composite jumped 1.5 per cent to 2,314.64.