Financial News

The MSE index registered its first decline in four sessions yesterday as banking sector stocks declined. Trade volumes were meagre as many investors paused to sense the market's next direction.

Maltacom shares continued to advance on speculation that the government should soon be concluding its privatisation process. Investors have ignored Tecom's bid price of Lm1.50 per share for the 60 per cent holding the government intends to sell, focusing instead on the synergies that the new majority stakeholders could create. The day's activity amounted to 16,576 shares which were struck across 11 deals, thereby pushing the price 5c or 2.6 per cent higher to Lm1.95.

Renewed selling activity in Bank of Valletta saw the price close the week at the Lm4.28 level. During the session a total of 18,475 shares were exchanged across 22 trades with the price falling gradually throughout to terminate at Lm4.28. At the end of the session the best bid in the market was for 5,000 shares at Lm4.26 while supply was for 2,612 shares at Lm4.30.

Investors finally reacted to Lombard Bank's two for one share spilt, as the price declined by Lm5.10,5 or 49.9 per cent to the Lm5.12,5 level. Initial trades were executed at the Lm5 level before a partially filled order was completed at the best available offer of Lm5.12,5.

FIMBank lost 2.4 per cent as 2,000 shares were purchased at the $2.05 level, leaving a further 16,120 shares unsatisfied on the offer side at this level against demand for merely 300 shares at a lowly $1.50 level.

Wall Street seen lower amid inflation fears

Wall Street looked set to open lower yesterday, following Thursday's sell-off and ahead of the release of data expected to show declining consumer confidence, an increase in the US trade gap, and higher inflation. An hour before the opening, S&P 500 futures were down 3.8 points while Nasdaq Composite futures were down 8.75 points. Dow Jones Industrial Average futures were down 25 points.

European equities were lower, adding to losses of the previous session amid fears of soaring commodity prices and their likely impact on inflation and interest rates. By midday, the FTSE Eurofirst 300 fell 1.4 per cent while Frankfurt's Xetra Dax shed 1.4 per cent. The CAC 40 in Paris fell 1.6 per cent and the FTSE 100 in London slid 1.5 per cent while the FTSE 250 slid two per cent.

Tokyo shares fell sharply, after further rises in the yen against the dollar caused a broad decline among exporters. The Nikkei 225 stock average fell 1.5 per cent to its lowest finish in seven weeks. The broader Topix fell 1.4 per cent to 1,688.18..

The yen has risen to an eight-month high against the dollar, fuelling concerns over exporters' profits overseas.