Financial News

The MSE index registered its second consecutive session of declines yesterday, weighed down by declines in the financial services.

HSBC Bank Malta lost 2.9 per cent as 65,936 shares were exchanged across 76 transactions. The equity immediately opened lower and kept declining, touching an intra session low of Lm2.30,3. However, in the final minutes of the session fresh buying activity trimmed the losses slightly, as the equity closed at Lm2.33.

Two shareholders swapped 392 shares of Lombard Bank at the Lm5.10 level, which represents a 0.5 per cent discount to Friday's closing price. Similarly, 189 shares of Middlesea Insurance were exchanged across a single transaction at Lm5.24c.

Elsewhere 11,139 shares of Bank of Valletta were exchanged without affecting its previous closing price of Lm4.28. During the session, the equity dropped to the Lm4.24 level before recovering towards the end.

Malta International Airport was the day's worst performer as the equity lost 5c or 3.3 per cent. Trading was relatively muted with only 1,600 shares being exchanged across four transactions at the Lm1.45 level.

Plaza Centres gained a penny as 900 shares were purchased across a single deal at the 66c level, while International Hotel Investments gained a full percentage point as 17,892 shares were struck across eight deals, pushing the price up to s0.95.

Maltacom commenced trading at the Lm1.96,9 level but the initial demand gave way to a stream of supply which hit the market at the Lm1.95 level, thereby forcing the equity to close without movement.

European stocks fall on interest rate concerns

London stocks fell sharply yesterday as the slump in the equities market that began on Friday continued. The FTSE 100 fell 2.6 per cent amid continued concern about weakness in the US dollar and the inflationary impact of high commodity prices. In early afternoon trade, the FTSE 100 had rallied slightly but was still down 1.2 per cent. The FTSE 250 fell 2.4 per cent.

European stock markets extended last week's losses as sentiment remained damped by concerns over the impact of long-term, record-high commodity prices on global inflation and interest rates. The FTSE Eurofirst 300 was down one per cent, while Frankfurt's Xetra Dax shed 1.2 per cent. The CAC 40 fell 1.1 per cent.

In Japan, the Nikkei fell to its lowest close in two months as investors continued their sell-off of leading exporters' shares, on the continuing strength of the yen against the dollar. The Nikkei 225 stock average dropped 0.7 per cent. The Topix index fell 0.4 per cent.

US markets looked set to open lower as a falling dollar added to inflation pressures, while falling commodities and oil prices held out the prospect of some relief for investors.

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