HSBC at six-month low

Local equities closed the week with further declines, bringing to five the number of consecutive sessions during which the MSE Index lost points.

Bank of Valletta suffered from an acute lack of demand and as a result the equity closed at the Lm3.90 level, which represents a decline of 4c5 or 1.1 per cent. The day's turnover amounted in 4,475 shares which were exchanged across seven trades.

HSBC Bank Malta lost a penny to drop to Lm2.09, its lowest level since mid-January 2006, as investors continued to respond with dissatisfaction to the group's interim results published two weeks ago. A grand total of 24,120 shares were exchanged over 35 transactions with buyers enjoying the luxury of choice from a plentiful bid side.

Lombard Bank declined 0.2 per cent to Lm5.98, although the activity was dictated by buyers who collected shares from bids placed at a lower level to the previous close. As much as 5,000 shares were exchanged during the session, the first since Lombard announced it had acquired a 35 per cent strategic shareholding in Maltapost plc.

International Hotel Investments gained in excess of three per cent on news that it had entered into agreements with Wyndham Hotel Group International Inc, Corinthia Palace Hotel Co. Ltd and CHI Ltd. Investors warmed up to the announcement, purchasing 12,442 shares up to the €0.93,8 level.

Buyers completely reversed Middlesea Insurance's previous session decline as 2,195 shares were struck across 11 deals helping the price recover five cents to two per cent, to close at Lm2.55.

Bourses cling to positive territory

Yesterday, London equities recovered as the market regained its poise after the previous session's sell-off sparked by the foiled terrorist plot to destroy transatlantic jets. British Airways, which had £220 million wiped off its market capitalisation on Thursday, recovered 1.6 per cent to £3.76. The FTSE 100 rose 0.3 per cent as the main index clawed back about half of the 40 points it lost on Thursday. The mid-cap FTSE 250 ticked 0.1 per cent higher.

Europe's bourses clung on to positive territory, recouping some of the losses in the previous session. The FTSE Eurofirst 300 rose 0.3 per cent with the Xetra Dax in Frankfurt up 0.2 per cent and the CAC-40 in Paris 0.5 per cent ahead.

In Japan sentiment in general was weakened by slightly lower than expected figures for second-quarter economic growth while Japanese airline stocks fell on news of the aborted plot to blow up aircraft flying from London. The Nikkei 225 was down 0.4 per cent and the Topix fell 0.3 per cent.

US stock futures pointed to a relatively flat opening despite US retail sales bouncing back in July after sliding into negative territory the previous month, recording its biggest gain since January.

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.