Financial News

Equities moved higher during yesterday's trading session spurred by gains in financial sector equities.

Global Financial Services Group once again led the gainers board as 500 shares were swapped across two transactions just as trading commenced. The equity jumped seven per cent to close the day at the Lm1.82,1 level.

Sustained buying activity in Bank of Valletta helped the equity climb 0.6 per cent to finish off at the Lm4.58 level, while HSBC Bank Malta climbed 4c or 0.4 per cent as 16,277 shares were struck across 44 deals.

FIMBank recovered nicely from its recent slump to reclaim the $2.00 level on high volume. In fact, FIMBank was the day's most liquid equity with a grand total of 121,900 shares being exchanged across 17 transactions. On the contrary, Lombard Bank declined 5c or 0.4 per cent to the Lm11.55 level, after initially trading on a higher footing.

Maltacom immediately commenced trading higher at Lm2.20 as investors reacted positively to further press reports concerning the sale of the government tranche of shares which amount to 60 per cent of the company's issued capital. A total of 53,910 shares were exchanged during the session with the price ending 2.8 per cent higher at Lm2.19.

International Hotel Investments was the day's biggest loser, as the equity almost reversed all of its previous session's gain and dropped five per cent to close at €0.855. Plaza Centres declined back to the Lm0.68 level while 4,908 shares of Simonds Farsons Cisk were exchanged across five transactions pushing the price lower by 2c to Lm0.83.

Bank of Japan takes the initial steps in interest rates

European stocks were higher yesterday as banks recovered from two poor sessions, drug stocks got a lift from a US recommendation, while a number of positive earnings helped lift sentiment. By midday, the FTSE Eurofirst 300 was up 0.6 per cent to 1,341.51, while Frankfurt's Xetra Dax gained 0.8 per cent to 5,720.65. In Paris, the CAC 40 added 0.6 per cent to 4,996.72 and London's FTSE 100 climbed 0.6 per cent to 5,846.9.

In Tokyo, the Nikkei 225 Average gained 2.6 per cent after the Bank of Japan ended weeks of uncertainty by announcing it had put in motion the initial steps that should eventually lead to its first rise in interest rates since it adopted its ultra-easy policy.

Japanese stocks were boosted by a combination of bargain hunting and a positive response to the Bank of Japan's decision to end quantitative easing. The bulk of the rises had come earlier in the day, before the bank's late afternoon announcement.

Analysts credited most of the day's gains to bargain hunting, following two days of share price falls. But they said stocks also gained some support from the announcement of an end to quantitative easing.

Wall Street had another lacklustre session, with the Dow Jones Industrial Average gaining just 0.2 per cent to 11,005.74, while the Nasdaq Composite ended flat at 2,267.46. A late rally saw US equities recoup early losses to finish higher on Wednesday as fears over inflation gave way to the positive impact of falling energy prices.