Financial News

Local investors returned to the market after the weekend break in a buying mood, snapping up shares in the two largest listed equities. As a result, the MSE index reversed its seven-day losing streak, gaining a full percentage point to climb back up to 5,094 points.

Bank of Valletta was the day's top gainer as lack of supply forced the hand of buyers. The day's turnover amounted to 4,342 shares which were purchased across nine transactions, pushing the price up by 9c7 or 2.7 per cent, to Lm3.75.

HSBC Bank Malta was the day's most actively traded equity with 30,500 shares being exchanged across 31 transactions. Initial selling activity kept the market price pinned at the Lm2.05 level, but the final deal of the day was struck at the Lm2.08 level, bringing a 1.5 per cent positive close to the equity.

On the contrary, FIMBank shares continued to suffer from an overhang of supply. The day's activity consisted of 1,000 shares which were swapped between two investors at the $1.81 level.

Middlesea Insurance declined 3.8 per cent to Lm2.40, as investors reacted with disappointment to the company's interim results, published after the close of business last Friday. Middlesea Insurance, which operates in four geographic segments: Italy, Gibraltar, London, as well as Malta, reported a 42 per cent drop in pre-tax earnings, to Lm1.2 million on lower insurance and investment income.

Maltacom shares declined to a new low for the current year, briefly touching the Lm1.69 level. However, buying activity trimmed the day's decline, helping the equity close at the Lm1.69,9 level.

All supply of Malta International Airport at the Lm1.35 level was cleared off the market as 4,000 shares were purchased across five transactions.

Wall Street seen higher as crude tumbles

US stocks were poised to start the week higher yesterday as oil prices fell below $60 a barrel for the first time in more than six months. An hour before the opening bell, S&P 500 futures were 5.45 points above fair value, while Nasdaq Composite futures were 6.43 points above fair value. Crude oil futures tumbled, at one point hitting $59.52, their lowest level since February.

Yesterday morning a further wave of takeover stories and oil slipping below $60 a barrel buoyed Europe's bourses. The FTSE Eurofirst 300 rose 0.3 per cent and the Xetra Dax in Frankfurt was up 0.6 per cent. The CAC-40 in Paris rose 0.6 per cent.

In London SSL International was the main focus of attention amid talk of an imminent takeover approach. In the wider market, the FTSE 100 was helped by gains in pharmaceutical stocks and investors' bargain hunting after Friday's sharp sell-off.

The benchmark was 7.9 points higher at 5,830.2. The mid-cap FTSE 250 rose 0.3 per cent, to 9,812.6.

Japan's Topix index declined a touch on continued fears that some domestic sectors had been overpriced given recent soft economic data. By the end of the day the Topix was down 0.2 per cent with the Nikkei 225 flat at 15,633.81.

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).