Financial News

Local equities succumbed to a bout of profit taking during yesterday's trading session at the Malta Stock Exchange as investors crystallized the gains before the weekend pause.

HSBC Bank Malta suffered the biggest decline as almost 51,000 shares were traded across 53 deals. The equity commenced trading higher at Lm2.21 however, a relentless supply of shares put pressure on the share price which dropped 10c8 or 4.9 per cent to finish off the session at Lm2.10.

Bank of Valletta too declined on selling activity, although fresh buying activity towards the end helped the price recover some of its earlier declines. The day's turnover saw 27,723 shares being exchanged across 50 trades, with the price touching the Lm3.70 level before ending at Lm3.75, which represents a 9c8 or 2.5 per cent discount to its previous closing price.

Selling activity in FIMBank brought a 2.6 per cent decline to the equity which terminated at $1.85, its lowest level since mid-February 2006. Activity was particularly robust with 52,500 shares changing hands across 4 transactions. On the contrary, Lombard Bank shares jumped 1.7 per cent higher to Lm4.52 on low volume, with merely 750 shares purchased across five transactions.

Maltacom shares swung back into negative territory during the final session of the week. Volume activity remained subdued, with merely 1,205 shares exchanged across three transactions. The price shed two cents or 1.1 per cent to close at Lm1.82.

Elsewhere, selling activity in Malta International Airport squeezed the price lower by 2c5 or 1.8 per cent to Lm1.32,5, its lowest level in 13 months.

Tokyo stocks hit by profit taking

Yesterday, Europe's bourses moved higher ahead of the latest US employment data. Economists polled by Reuters expected 120,000 jobs were added in August, following July's gain of 113,000. The data will be pored over for clues to the outlook for US interest rates. The FTSE Eurofirst 300 rose 0.4 per cent with the Xetra Dax in Frankfurt 0.4 per cent ahead and the Paris CAC-40 0.4 per cent better. The FTSE 100 in London 0.5 per cent higher.

BHP Billiton and Rio Tinto investors breathed a sigh of relief following news that striking workers at La Escondida, the world's largest copper mine in Chile, had voted to accept a new labour contract and end their industrial action. Copper prices have been extremely volatile recently over fears of a shortage as the strike brought around half of the mine's production to a halt.

Overnight in New York, investors were reluctant to commit themselves ahead of the non-farm payrolls data.

Tokyo shares slipped, as investors took profits in exporters that rallied in previous sessions on the yen's weakness against the euro. The Nikkei 225 stock average fell 0.04 per cent, while the broader Topix index was down 0.07 per cent.

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).