Financial News

Local equities took a further tumble during the mid-week session with the Malta Stock Exchange index falling by a significant 2.7 per cent, to 5,266.043 points. Investors continue to sell off major equities ahead of the quiet summer season and in view of the turn in sentiment experienced in the past two months.

HSBC Bank Malta was the most badly hit by the downward trend, with the equity falling by over 4.5 per cent on the day, to Lm2.10. The equity commenced trading at the Lm2.15 and fell immediately to Lm2.10c, as investors gave in to buyers' requests.

Bank of Valletta registered a roller coaster ride, with the share price first falling by as much as 4.5 per cent, to Lm3.80 only to bounce back again to Lm3.90 and trim losses to a mere two per cent, by the end of the session. Volumes were particularly strong as the lower valuations brought investors back to the market.

Maltacom shares fell immediately at the open to Lm1.86 and by the end of the session, losses widened by a further 1c, as the share fell by 2.6 per cent, to Lm1.85. Malta International Airport shares followed suit, as the equity shed 2.7 per cent to close the day at Lm1.43.

Lombard Bank Malta bucked the negative trend with the equity gaining 3.1 per cent or 15c, to regain the Lm5 level.

Elsewhere there was no change in price in the remaining equities trading during the day which were Global Financial Services Group and Datatrak Holdings.

Tokyo shares flat despite banking gains

The London market remained lower in quiet mid-morning trading yesterday, dragged down a large programme of trade and Wall Street's disappointing performance overnight. The FTSE 100 was off 0.5 per cent. The FTSE 250 shed 0.56 per cent.

Modest opening gains for European equities vanished rapidly and bourses extended their losses by mid-morning, amid weakness in the oil, mining and real estate sectors. The FTSE Eurofirst 300 fell 0.6 per cent while the German Xetra Dax declined 0.9 per cent. The French CAC 40 fell 0.7 per cent. In Japan, falls in export stocks on continued fears about the US economy were counterbalanced by rises in some domestic sectors such as banking. The Topix fell 0.3 per cent. The Nikkei 225 stock average ended flat at 14,644.26. Electrical machinery, transport equipment and precision machinery, all big export sectors, each fell about 0.5 per cent.

Wall Street looked set to open lower again following a sluggish day of trading on Tuesday, when markets gave up earlier gains. An hour before markets opened, S&P 500 futures were 0.96 points below fair value, while Nasdaq Composite futures were 1.43 points below fair value.

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