Financial News

Local equities declined by 1.1 per cent during the mid-week session of the Malta Stock Exchange although activity was relatively muted with deals being struck in only four of the listed equities.

HSBC Bank Malta was the day's biggest loser as the equity commenced trading without the right to receive a 5c3 gross interim dividend. To compensate for this shortfall, investors place bids at lower prices when an equity turns "ex-dividend". As a matter of fact, the equity immediately commenced trading lower and by the end of the session a total of 29,569 shares were exchanged across 43 transactions, thereby squeezing the price lower by 4c9 or 2.2 per cent to Lm2.18,1.

Maltacom remained beleaguered by low volume selling pressure and an acute lack of bids. Accordingly, the equity shed 2c5 or 1.3 per cent of its value as merely 1,800 shares were swapped across three transactions. At the end of the session 545 shares were best bid at Lm1.92,5 against supply of 250 shares offered at the Lm1.94,5 level.

Trading in Bank of Valletta was characterised by soft buying activity as 5,950 shares were collected across eight transactions. Buyers managed to procure themselves the best deals as the equity closed the session 1c9 or 0.5 per cent lower, at Lm3.97,9.

Separately, two investors swapped 800 shares of Lombard Bank without affecting its previous closing level of Lm5.99. The hefty spread witnessed recently remained at the close of the session, with the best bid coming in for 200 shares at Lm4.75 against 1,200 shares on offer at Lm5.99.

FTSE 100 continues upward trend

European stocks were higher yesterday after earnings season accelerated with financial stocks again in focus as results came from Credit Suisse and BNP Paribas. By midday, the FTSE Eurofirst 300 was up 0.7 per cent, while Frankfurt's Xetra Dax gained 1 per cent. In Paris, the CAC 40 added 1.1 per cent.

London stocks continued their upward march as investors shrugged off bad news from Cadbury Schweppes. Reporting otherwise satisfactory interims, the drinks and confectionary group admitted that the recent contamination scare would cost it £20 million, however less than the £40 million feared by some. The news pushed Cadbury shares up 3.4 per cent. By late morning trade, the FTSE 100 was up 0.4 per cent. The FTSE 250 was 0.3 per cent higher.

Falls in big Japanese exporters amid concerns over a potential slowdown in the US economy were offset by gains in small and mid-cap companies, leaving the Tokyo stock market slightly up.

The Nikkei 225 and the Topix increased 0.2 per cent respectively. US stocks were set to open higher as positive earnings results lured investors back into the market following Tuesday's sell-off. An hour before the bell, S&P 500 futures were 4.50 points above fair value, while Nasdaq Composite futures were 5.40 points above fair value.

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