Financial News
BOV leads index lower
A particularly negative showing by the banking sector weighed on the performance of the Malta Stock Exchange index which shed almost one per cent, to 5,683.7 points.
Bank of Valletta lead the sector lower as the share price fell by 13c or 3.1 per cent, to a two-week low of Lm4.07. Trading in the equity commenced at the Lm4.19,9 level but succumbed immediately to selling pressure on relatively low volume.
FIMBank was another heavy loser on the day, as the share price fell by 3.5 per cent, to $1.91. Investors continued to sell the equity on news published late last week that the company may have to pay a fine of $5 million following a major litigation case with the government of Azerbaijan.
The day's activity consisted of 26,500 shares which were struck across eight deals.
Also ending in negative territory were shares of HSBC Bank Malta and Malta International Airport both of which fell marginally by less than 1c, to Lm2.39 and Lm1.49,5, respectively.
The rest of the market ended in the black and was lead mainly by the four per cent gain registered by Middlesea Insurance which closed at Lm5.25.
On their part, Maltacom shares consolidated themselves above the Lm2 level, as the share price advanced for the sixth straight session to Lm2.02. International Hotel Investments also edged marginally higher to close the day at €0.95.
Japan's Nikkei sees biggest one-day loss in a year
European equity markets fell yesterday to their lowest levels this year after a sell off on Wall Street and Asia overnight amid fears monetary tightening in the US and Europe could harm economic growth. The FTSE Eurofirst 300 fell two per cent with the Xetra Dax in Frankfurt down two per cent. The CAC-40 in Paris was 1.8 per cent lower.
London stock markets suffered a sharp sell-off in response to heavy falls overnight in Asia. After Japan's Nikkei 225 slumped three per cent to close below 15,000 for the first time this year amid concerns about the US economy, London stocks followed suit with resources again at the forefront of the rout.
By mid-day, the FTSE 100 was trading 1.5 per cent lower while the mid-cap FTSE 250 fell 1.6 per cent. The Topix, dropped 3.3 per cent. Many exporters, such as automakers, were hit particularly badly.
Wall Street looked set to open lower, with investors growing nervous about inflation and rising interest rates. An hour before markets opened, S&P 500 futures were 6.98 points below fair value, while Nasdaq Composite futures were down 12.81 points below fair value.
BOV and VFM are licensed by the MFSA to conduct investment services business.