Lombard Bank lifts index

Activity was quiet when trading resumed yesterday following the mid-week pause, with price fluctuations mainly concentrated to the small cap section of the market.

Lombard Bank was the day's top gainer with the equity gaining 30c or the equivalent of 5.5 per cent to close the day at Lm5.75. The day's activity consisted in a single purchase of 9,644 shares which was executed in rapid succession across six transactions towards the end of the session.

Persistent buying activity in HSBC Bank Malta helped the equity close yesterday's session with a penny's gain. Activity was mainly driven by the bid side and consisted in 14,430 shares which were struck across 21 deals. The equity climbed back up to the Lm2.20 level, which is considered as a psychological support level.

Bank of Valletta failed to make any headway as supply continued to build up on the offer side. The day's turnover amounted to just 2,587 shares which were swapped across six transactions at the Lm4 level.

Shares of Global Financial Services Group, which will officially change its trading name to GlobalCapital as from next Monday, gained 3c or 1.5 per cent. Merely 1,120 shares were exchanged during the session but that was enough to see the equity close the day at Lm2.06.

Elsewhere in the market, trading in Middlesea Insurance did not affect its previous closing price of Lm2.60 although the price did touch an intra-session low of Lm2.55.

Wall Street surges on rate decision

Wall Street enjoyed a dramatic rally on Thursday, surging in the final hours after news on interest rates from the Federal Reserve. Shares in New York jumped sharply higher following the Fed's move, which pushed the main US rate to 5.25 per cent.

At the close, the S&P 500 was up 2.2 per cent, while the Nasdaq Composite was up three per cent. The Dow Jones Industrial Average was up two per cent.

The Tokyo stock market leapt yesterday, boosted by strong performance on Wall Street and expectations that the US interest rate cycle may have peaked. The Nikkei 225 ended up 2.5 per cent while the broader Topix rose 2.5 per cent.

European stocks made strong gains after the US Federal Reserve's 25-basis-point rate increase in the previous session was accompanied by a statement indicating a pause in the Central Bank's tightening cycle. By midday, the FTSE Eurofirst 300 was up one per cent, while Frankfurt's Xetra Dax added 1.2 per cent.

In Paris, the CAC 40 gained 1.1 per cent. The London market continued higher yesterday, putting the FTSE 100 on course for its biggest weekly gain since November.

London's FTSE 100 climbed 0.8 per cent.

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.