Investors snap up equities

Equities progressed higher on continued buying momentum during yesterday's trading session at the Malta Stock Exchange, thereby helping the Index close almost 0.5 per cent higher at 5,412 points.

Maltacom was the day's top gainer, as the equity rallied 3c9 or 2.1 per cent to close the session at Lm1.89c9. The day's turnover amounted to just 4,591 shares which were exchanged across seven transactions with the price touching an intra-session high of Lm1.90c.

Among banking sector equities, Bank of Valletta shares registered the biggest increase. A total of 19,978 shares were exchanged across 23 transactions with the price reclaiming the psychological Lm4 level for the first time in five sessions.

In an announcement prior to the session's opening, Bank of Valletta stated that Banco di Sicilia SpA would be seeking to transfer its holdings in the company to Capitalia SpA, its ultimate parent company.

HSBC Bank Malta was the day's most actively traded equity with a grand total of 64,475 shares being exchanged across 47 transactions. A continued supply of shares prevented the price from making significant headway, with the equity closing just 0c5 higher, at Lm2.19c4.

A single transaction for 375 shares of Middlesea Insurance saw the price react, with a day's delay, to the one-for-one share split. The equity closed "unchanged" at Lm2.65c. Middlesea Insurance too announced a change in its shareholding with Mapfre Internacional SA, a company fully controlled by Corporacion Mapfre SA, to receive 2,625,000 ordinary shares of nominal value 50c held by HSBC Bank Malta Plc as sub custodian for Bank of New York, as custodian for Corporation Mapfre. Here too there will be no change in the ultimate beneficial owner.

Rexam upgrade lifts London stocks

Yesterday, Wall Street was set to open lower with rising oil prices depressing stocks as investors awaited data on consumer confidence and existing home sales in May. An hour before markets opened, S&P 500 futures were down 1.87 points below fair value, while Nasdaq Composite futures were down 3.71 points below fair value.

European equity markets erased much of their early gains as mixed performances in the financial sectors and weaker auto stocks, largely offset gains in the oil sector. By midday, the FTSE Eurofirst 300 was flat at 1,278.34, while Frankfurt's Xetra Dax was also unchanged at 5,515.44. The CAC 40 in Paris climbed 0.1 per cent.

Rexam was a leading gainer in London after a broker upgrade for the world's largest drinks can maker. In the wider market, the FTSE 100 index was 8.5 points higher while the mid-cap FTSE 250 was up 15.3 points.

Fears of further interest rate rises in the US continued to dog Japanese equity markets sending exporters lower. Overall, however, the major benchmarks were flat, on speculation of merger activity among commodities companies. The Nikkei 225 closed 0.1 per cent higher while the Topix was virtually unchanged.

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.