Financial News

Sellers continued where they left off last week, during yesterday's trading session at the Malta Stock Exchange, dumping banking sector equities on the best available bids. As a result the MSE Index notched its ninth consecutive session of declines, dropping a further 1.4 per cent to close just above the 5,000 point level.

Lombard Bank was yet again the day's top loser as a further 5.7 per cent was shaved off its market valuation. The day's activity saw 10,428 shares being exchanged across four transactions, with the price closing at the Lm4.44,5, which also represents a 27c1 discount to Friday's closing level. Lombard Bank has lost a fifth of its value in the past five sessions alone.

Following a flurry of commentaries in the weekend press, Bank of Valletta was the day's most actively traded equity with 67,027 shares, carrying a market consideration of Lm236,192, transacted across 75 deals. Buyers were firmly in control, gradually lowering their bids by 7c or 1.9 per cent, down to Lm3.50.

HSBC Bank Malta suffered a similar decline of 1.9 per cent as 43,314 shares were exchanged across 46 transactions. The equity shed for cents to the Lm2.01 level leaving at the end of the session a further 5,410 shares on demand at this price against supply of 920 shares at Lm2.04.

Elsewhere in the market, Maltacom shares held up well with 8,000 shares being transacted across six transactions. The final trade of the day was executed at the Lm1.84,9 level, forcing the most slimmest of declines to the equity.

Tokyo stocks retreat on Softbank losses

Yesterday, European equities were lower after a fall in crude oil prices hit energy stocks, while Italian banks gave back gains after recently riding high on merger speculation. Crude oil prices fell to below $72 a barrel after a hurricane in the Caribbean was downgraded to tropical storm, reducing the threat of damage to oil production facilities in the Gulf of Mexico.

In early trade, the FTSE Eurofirst 300 was down 0.1 per cent while Frankfurt's Xetra Dax shed 0.3 per cent and the CAC 40 in Paris lost 0.3 per cent. The London Stock Exchange was closed for a public holiday.

Tokyo shares closed at their lowest level in two weeks with Softbank shares falling further after questions were raised about its accounting practices. The benchmark Nikkei 225 was down 1.1 per cent while the broader Topix index was down 1.2 per cent.

Shares of Softbank fell 5.6 per cent, adding to a nearly 10 per cent decline on Friday after Nicholas Spratt, an analyst at Lehman Brothers, last week reduced the 12-month price estimate on Softbank's shares to 900 yen from 1,125 yen in a note to clients. The note raised concern over Softbank's rising debt and the possibility that it overpaid for Vodafone's mobile phone unit. The Nikkei newspaper reported that the company's purchase of Vodafone resulted in more goodwill than tangible assets.

BOV and VFM are licensed by the MFSA to conduct investment services business.

Valletta Fund Management (tel. 8007 2344) and Bank of Valletta plc (Tel 2131 2020).