Shares on Wall Street were set to open higher tomorrow, with investors expected to react positively to a fresh wave of merger and acquisition activity. With no major economic data or corporate earnings news on the calendar, the market was left to consider the implications of a number of bid approaches.

The FTSE Eurofirst 300 was flat on Tuesday as strength in the oil and automobile sectors was offset by weakness in banks and pharmaceuticals.

The FTSE Eurofirst 300 was flat at 1,363.73 with the FTSE 100 in London 0.1% ahead. However, the Xetra Dax was down 0.4% and the CAC-40 0.1 per cent lower.

Rises in securities companies pushed the Japanese market up on Wednesday, but the overall gains were limited by falls in real estate shares and a static performance from export stocks.

European stocks drifted lower on Thursday but retailer Casino made strong gains, while mobile phone group Telefonica Moviles' early bubble was burst by a lower than expected buyout offer from its parent.

Japanese real estate stocks plunged on Thursday, leading domestically-focused shares downwards. The Nikkei 225 finished 1.4% lower. The Topix fell 1.3%. Bourses powered ahead on Friday morning as the latest bout of takeover talk boosted the insurance sectors with strength in banking and oils also supportive ahead of likely volatility during the quarterly stock index options and futures expiry.

The FTSE Eurofirst 300 gained 0.6%, its highest since July 2001. The Frankfurt Xetra Dax added 0.7%, the CAC-40 in Paris rose 0.7%, and the FTSE 100 having laboured all week to make the distance, leapt above the 6,000 level yesterday morning, up 0.7%.

This article was compiled by Valletta Fund Management Limited, a member of the BoV Group. Valletta Fund Management, The Mall Offices, Level 6, The Mall, Floriana VLT 16. Freephone: 8007-2344. E-mail: infovfm@vfm.com.mt. Website: www.vfm. com.mt. VFM is licensed by the MFSA.