Financial News

The equity market at the Malta Stock Exchange sold off yesterday as investors gave a warm reaction to Bank of Valletta's interim results. Notwithstanding the fact that Bank of Valletta's interim pre-tax profit jumped 92 per cent to Lm18.8 million and that the directors approved a significant 46 per cent increase in its gross interim dividend to 5c5, in the absence of strong buying interest, the shares drifted lower to Lm4.81c9, after an initial spike.

HSBC Bank Malta too closed lower during the final session of the week, as investors shunned news that an international call centre was being set up by the bank in Malta. The price experienced a rather volatile session closing in the end, 10c5 or four per cent lower, at the Lm2.51,5. Investors purchased shares of Middlesea Insurance ahead of the company's full year results which were duly published after the close of the day's session. The equity gained 5c4 or a full percentage point to close at the Lm5.33,9 level.

Selling activity in Simonds Farsons Cisk brought about a 3c or 3.6 per cent fall in price to 80c, as investors reacted with a slight delay to the decline in the company full year results which were reported on Wednesday.

Elsewhere in the market, Maltacom shares closed 2.1 per cent higher at Lm1.84,8 while Malta International Airport gained a penny to close at Lm1.41. Both equities traded in relatively small quantities.

Commodities sector leads drop in Tokyo stocks

The strong yen hit export stocks yesterday while commodities shares were sharply down following the rise in Chinese interest rates. Much of the rise in commodity prices in recent months has been attributed to strong Chinese demand. Higher interest rates could dampen that demand.

Individual companies showed a mixed response to earnings results, though there were dramatic swings in some stocks as a result.

The Nikkei 225 closed down 1.2 per cent, its lowest close since March 28. The Topix fell 0.8 per cent.

European equities were lower as heavily-weighted oil stocks fell on fears that higher interest rates in China would cool demand, while carmakers fell after disappointing results from Volkswagen.

By midday, the FTSE Eurofirst 300 was down 0.4 per cent, while Frankfurt's Xetra Dax fell 0.8 per cent. The CAC 40 in Paris shed 0.4 per cent and London's FTSE 100 gave up 0.3 per cent.

London equities stayed in negative territory yesterday, as Yell's shares fell on news of a £2.3 billion acquisiton and the oil sector weakend as crude prices eased. The FTSE 100 fell 0.2 per cent after losses of about 44 points during the previous session. Lower crude prices kept the blue-chip index's twin heavyweights under the flatline. BP fell 0.3 per cent and Royal Dutch Shell's B shares lost one per cent. The mid-cap FTSE 250 fell 0.1 per cent.

Shares of Microsoft Corp. tumbled 11 per cent yesterday, after the world's largest software maker reported third-quarter profit that missed Wall Street expectations and lowered its earnings guidance.

The tempered forecast, which comes as Microsoft boosts research and development spending, left some analysts grappling with whether that decision will translate to higher profit.