Financial News

Local equities threaded water during a lacklustre trading session yesterday, which saw activity being struck across just four equities and six bonds.

Typically, HSBC Bank Malta was the most actively traded equity with 41,488 shares being exchanged across 25 transactions. The equity opened and closed at the unchanged level of Lm2.35c, although it very briefly touched the Lm2.34,9 level. For the third consecutive session, buyers and sellers seem content to meet around this level, as they await the publication of the bank's interim results which are due tomorrow.

Buying activity in Bank of Valletta saw all residue supply at the Lm4 level being cleared out as 7,675 shares were exchanged across 11 trades. This level, which has provided strong resistance in the past, is now seen as a key support level. In fact at the end of the session, 150 shares were left unsatisfied on the bid side at Lm4 while 2,000 shares were best supplied at Lm4.05.

A single transaction executed in Lombard Bank, saw 1,000 shares being sold at the Lm5.55 level, which represents a 10c or 1.8 per cent discount to its previous closing price. A considerable spread has developed between the bid side and the offer side, with investors wishing to purchase at Lm4.75 while 3,600 shares are up for sale at Lm5.65.

Elsewhere, two investors swapped 2,520 shares of International Hotel Investments without affecting its previous closing price of €0.91.

FTSE 100 higher after four days of losses

European bourses yesterday were stronger thanks to strong earnings reports and oil holding about $4 below last week's peak. The FTSE Eurofirst 300 rose 0.6 per cent with the Frankfurt Xetra Dax up 0.6 per cent and the CAC-40 in Paris 0.5 per cent.

The London market, which has fallen for the past four sessions, moved higher as investors took heart from Wall Street's solid overnight performance. By midday, the FTSE 100 was up 0.2 per cent with the heavyweight banking sector providing most of the early impetus.

The Japanese stock market rose in morning trading as export-focused shares rallied. The drop in crude oil prices was a relief for Japanese investors, who were concerned that rising oil prices would impede the growth of the US economy, a major export market for Japan. The Nikkei 225 ended the morning session up 1.3 per cent. The broader Topix rose 0.9 per cent.

US markets were poised to open mixed as investors digested some worryingly strong inflation data and another slew of earnings reports. An hour before the start of trade, S&P 500 futures were 3.25 points above fair value, while Nasdaq Composite futures were 2.89 points below fair value.

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