Equities decline on soft volume

Yesterday's trading session was characterised by low volume activity in the equity markets as many investors remained on the side lines awaiting clearer indications where the market would be heading next.

HSBC Bank Malta was the most actively traded equity; however, the day's turnover amounted to just 16,746 shares which were exchanged across 28 trades. The equity traded within a 2c trade range closing the session at Lm2.45, its lowest level of the session. At the end of the day 250 shares were best offered at Lm2.45,5 against supply of 500 shares at Lm2.48.

Light selling activity was also evident in Bank of Valletta where the price declined 2c5 or 0.6 per cent to close at its lowest level in three weeks. The day's activity saw barely 6,720 shares being exchanged across 16 trades, thereby squeezing the price to close at Lm4.12. At this level, a further 1,989 shares remained outstanding on the bid side opposed by 2,000 shares offered at Lm4.14.

Global Financial Services Group managed, once again, to recoup an initial decline which brought its price below the Lm2 level. In all, merely 1,440 shares were transacted, but the equity closed unchanged at Lm2.05.

Trading activity in Maltacom remained resilient, with the equity comfortably holding up at the Lm1.95 level. During the session 12,958 shares were struck across 10 deals with both buyers and sellers agreeing prices very close to its previous closing level.

Elsewhere, two investors swapped 265 shares of Malta International Airport at Lm1.45 which represents a 1c gain over Monday's closing level.

London rallies amid nervous investors

European and UK stocks bounced from five-month lows yesterday as investors shrugged off a weak Wall Street and Asia, and picked up bargains among the stocks which were at the forefront of recent declines.

By midday the FTSE Eurofirst 300, rallied 1.2 per cent. Frankfurt's Xetra Dax added 1.2 per cent and the CAC 40 in Paris climbed 1.4 per cent.

US stocks fell overnight, but clawed back from their worst levels of the day to leave the Dow Jones Industrial Average down 0.2 per cent and the Nasdaq Composite off one per cent. Oil prices surged back above $70 a barrel. The London stock market rallied, clawing back a large chunk of the previous session's losses as mining and oil stocks rebounded and Associated British Ports received a £2.5 billion bid approach. The FTSE 100 traded one per cent, higher in mid-morning trading and the FTSE 250 rallied 2.64 per cent.

The Japanese stock market was pushed down by a combination of weakness in both export-focused and domestic sectors. The Nikkei 225 closed 1.6 per cent lower and the Topix was 2.3 per cent lower.

The financial news was compiled by Valletta Fund Management (tel. 8007 2344) and Bank of Valletta plc (Tel 2131 2020). BOV and VFM are licensed by the MFSA to conduct investment services business.