Financial News

The MSE Index suffered its fouth consecutive decline yesterday as selling pressure continued to push prices lower.

HSBC Bank Malta was again the day's biggest loser as the equity plummeted by a further 4.4 per cent bringing the total decline in past four sessions to more than 12.5 per cent. Turnover remained high with a total of 115,465 shares changing hands across 199 transactions. The offer side was the more aggressive and as a result the price closed at the Lm2.62c5 level.

Selling activity also spread over to Bank of Valletta where as many as 42,994 shares were exchanged down to the Lm4.70c level.

Shares of Lombard Bank escaped relatively unscathed from the selling activity that gripped the banking sector as merely 65 shares were exchanged across two transactions at the Lm11c level.

Investors purchasing Maltacom shares finally reacted to the fact that they were doing so without the right to receive the full dividend, and subsequently lowered their bids. As a result the equity shed 3c1 or 1.7 per cent of its value to close the day at Lm1.82c. The day's turnover amounted to 16,075 shares which were struck across 18 deals.

Global Financial Services Group bucked the trend for the second consecutive session and gained 2c or 0.9 per cent to end the day at Lm2.11c9. The shares advanced notwithstanding the fact that investors purchasing shares during the session were doing so without the right to receive a gross final dividend of 1c5 and a gross special dividend of 3c.

Akzo provides catalyst for European gains

European equity markets shrugged off concerns about record oil prices and extended their early gains yesterday helped by a range of corporate earnings figures.

The FTSE Eurofirst 300 rose 0.3 per cent to 1,388.24 while the German Dax added 0.7 per cent at 6,033.2 and French CAC 40 increased 0.8 per cent to 5,198.3. A fresh batch of takeover talk broke out among the mid-cap stocks as the FTSE 100 carried the 6,100 level.

Akzo Nobel led the FTSE Eurofirst 300 with a gain of 7.6 per cent at €47.00 after the Dutch chemicals company reported substantially higher revenues and operational earnings for the first quarter. First quarter revenues rose 12 per cent to €3.4 billion, helped by favourable currency movements. Headline net income declined 13 per cent to €249 million but excluding restructuring charges and other incidentals, net income rose 39 per cent to €215 million. A partial flotation of its Organon Biosciences unit is planned for later in the year.

The continuing rise in global energy prices helped push up Japanese oil-related stocks yesterday, but the key indices for the Tokyo market remained largely unchanged. The Nikkei closed 0.2 per cent lower at 17,317.53. The Topix ended the day virtually unchanged at 1,747.86.

News that Japan's wholesale petrol prices may rise next month pushed up midstream and downstream oil companies, which have not always in the past been able to pass on their higher crude oil costs to customers.