Financial News

Buying activity returned to the local market yesterday, as equities bounced higher following buoyant results by the Global Financial Services Group. In effect, GFSG was the day's top performer as the equity bounced 7c or 3.5 per cent higher to close the session at a multi-year high of Lm2.06, on strong turnover.

Bank of Valletta recouped more than its previous session's entire decline, as 20,110 shares were exchanged across 40 transactions. The equity gained 8c or 1.6 per cent in total, closing the session at Lm4.98.

Similarly, HSBC Bank Malta immediately commenced trading higher and kept on advancing into uncharted territory throughout the session. In the end, a total of 17,831 shares were exchanged across 93 trades, with the price closing at a new record high of Lm11.77,8.

Activity in FIMBank was mainly driven by the bid side, as 21,100 shares were purchased across five trades, pushing the price higher by 0.9 per cent to $2.10.

Lombard Bank bucked the trend in the banking sector, as 515 shares were sold across two transactions pushing the price down 25c or 2.1 per cent to the Lm11.50 level.

Maltacom shares ended 1c9 or 0.8 per cent higher and closed at a five-year high of Lm2.23,9.

Two investors swapped 1,000 shares of Malta International Airport at a 2c premium to Friday's closing price, while concurrently 1,100 shares of San Tumas Shareholdings were exchanged at Lm1.08. Elsewhere, Middlesea Insurance succumbed to profit taking as 1,742 shares were sold down to the Lm5.20,5 level.

Bourses dragged lower by utilities and oils

Europe's bourses were pulled lower by weak utilities and oils ahead of an expected further quarter point tightening of interest rates in the US. Silver rose to its highest in more than 22 years in Asia. The FTSE Eurofirst 300 fell 0.1 per cent to 1,381.32 with the FTSE 100 off 0.4 per cent to 6,012.6. The Xetra Dax in Frankfurt was marginally lower at 5,970.68 and the CAC-40 in Paris slid 0.4 per cent to 5,197.70.

London equities fell in morning trade yesterday, easing back from initial gains as expectations of a US interest rate rise weighed on fund management companies and worries grew over the impact of increased pension deficits on major companies. The FTSE 100 lost 0.4 per cent to 6,010.9 and the mid-cap FTSE 250 was down 0.6 per cent to 9,875.2.

The swing to lower expectations of the depth of monetary tightening is a reverse of sentiment to last week's view that the peak for interest rates was likely to be higher than previously thought. The prospect of US interest rates peaking sooner than expected provided stocks on Wall Street with a boost on Friday.

Rises in real estate and chip-related stocks pushed up the Japanese market yesterday. The Nikkei 225 closed 0.5 per cent higher at 16,650.10. The Topix was up 0.3 per cent to 1,693.84. Real estate continued Friday's gains, rising another 1.1 per cent in the wake of last week's national survey of land prices.