Financial News

After an initial lower opening, equity prices recouped during yesterday's trading session, helping the index close the day 1.5 per cent higher at 5,583 points.

Bank of Valletta was the day's top gainer, as the equity experienced a remarkable turnaround. Before the market opened, a fairly large amount of shares were offered at the Lm3.79,5, but this level proved too tempting for other investors who piled in their bids. The equity eventually commenced trading 4.4 per cent lower at the Lm3.90 level and climbed steadily throughout the session, closing the day 4.2 per cent higher at Lm4.25.

HSBC Bank Malta initiated trading at Lm2.24, but the price quickly sunk to its lowest permissible level of Lm2.08,4. However, at this level, a certain amount of demand started appearing, gradually lifting the equity to close the day 2c or 0.9 per cent higher at Lm2.26.

Middlesea Insurance was the day's only decliner as 6,537 shares were sold across eight transactions pulling the price down to Lm5.28.

Elsewhere in the market, Maltacom shares closed to the upside too, although initial gains were trimmed. In fact the equity touched a high of Lm1.85, but closed the session at the Lm1.82 level after 15,150 shares were exchanged across 19 transactions.

International Hotel Investments climbed two percentage points as 12,000 shares were purchased in rapid succession across two transactions pushing the price up to the €0.949 level.

Concurrently, Malta International Airport closed the day 0.5 per cent higher as supply up to the Lm1.43 level was cleared out, when 5,410 shares were exchanged across three transactions.

European stocks led higher by financials

European stocks were higher yesterday, driven by gains for financial stocks as the outlook for global interest rates turned a little more dovish after Friday's weaker-than-expected US jobs report. By midday, the FTSE Eurofirst 300 was up 0.2 per cent to 1,401.53, close to a five-year high, while Frankfurt's Xetra Dax added 0.3 per cent to 6,134.27. The CAC 40 in Paris added 0.2 per cent to 5,294.78.

Wall Street stocks looked set to open relatively unchanged as investors waited for tomorrow's Federal Reserve meeting. Merger and acquisition news provided impetus for some stocks, with investors eyeing Wachovia, Golden West and Fisher Scientific.

Japanese stocks made a good start yesterday after the "Golden Week" holiday, boosted by the advance in US shares the previous week and strength in commodities stocks. The Nikkei 225 was 0.8 per cent higher at 17,291.67. The Topix rose one per cent to 1,755.03. But the gains were generally limited to domestically focused stocks - reflecting fears about the impact of a stronger yen on exporters.

BSkyB shares lost 0.8 per cent to 524p as investors worried it could have overpaid. Merrill Lynch agreed BSkyB had paid "considerably more than expected" and cautioned that Setanta, the Irish broadcaster that won the remaining two packages, could become a "credible alternative sport offering" to BSkyB.

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