Buying halts equities' decline

Local equities halted a five session decline during yesterday's trading session which also saw a slight increase in trading volumes. However, buyers were particularly cautious with the orders and as a result the MSE Index just gained 0.04 per cent.

Bank of Valletta attracted the highest value of business with 17,283 shares, carrying a market consideration of Lm67,333, exchanged across 18 deals. The equity traded within a 1c trade range, below the Lm3.90 level though the final trade of the session was executed at Lm3.89,9, which represents a 0c1 discount to Friday's closing price.

Maltacom, which is due to report its interim results exactly within a month's time, was the day's top gainer. The equity improved by 0.4 per cent as 6,250 shares were exchanged across seven transactions with the price closing at Lm1.94,8. At the end of the session, 2,000 shares were best bid at Lm1.91 against supply of a further 450 shares offered at Lm1.94.

Investors remained positive on International Hotel Investments following last week's announcement of a cluster of agreements with a subsidiary of Wyndham Hotel Group, Corinthia Palace Hotel Co Ltd and CHI Ltd. This was witnessed by further buying activity which saw 24,750 shares being collected across five trades thereby helping the price move higher by 0.2 per cent to €0.94.

Elsewhere, Malta International Airport shed 0.4 per cent as two investors swapped 1,000 shares at the Lm1.44,4 level. A lack of demand for MIA shares has brought about a widening of the bid/offer spread to Lm1.40,1 and Lm1.44,4 respectively.

London stocks advance as BP rallies

European equity markets were higher yesterday thanks to oil prices falling after it was hoped a UN-brokered ceasefire would end five weeks of fighting between Israel and Hizbollah. By midday, the FTSE Eurofirst 300 was up 0.7 per cent while Frankfurt's Xetra Dax gained one per cent. In Paris, the CAC 40 added 1.1 per cent.

London equities advanced as oil prices eased at the scheduled start of the ceasefire in the Middle East, while BP confirmed it would keep half of its Prudhoe Bay oilfield in production during repair work. The FTSE 100 rose 0.8 per cent while the FTSE 250 climbed 0.3 per cent. Investors welcomed news of continued production during the Prudhoe bay repair work, pushing shares of BP 1.3 per cent higher. This, together with the start of the Lebanon ceasefire, saw crude prices ease.

Japanese shares climbed, unfazed by an early morning power outage in Tokyo. Instead, investors took heart from last week's data showing continued strength in the Japanese economy and expectations that the yen would remain weak relative to the dollar.

US equity markets were set to start the week higher, as investor confidence was boosted by ceasefire news in the Middle East and lower oil prices. An hour before markets opened, S&P 500 futures were 8.45 points above fair value, while Nasdaq Composite futures were 12.63 points above fair value.

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.