Financial news

Declines in the two largest listed companies dragged the MSE index lower by 1.2 per cent to 5,059 points during yesterday's trading session.

However, the selling activity did not spill over to the smaller capitalised companies which maintained or increased in price.

Simonds Farsons Cisk was the day's top gainer as 10,394 shares were purchased across three transactions.

The equity rallied 5.7 per cent to 74c after the company issued its interim results which showed that profits from continuing operations for the period increased by a staggering 122 per cent to Lm467,000.

The beverages group reduced its operations and administrative costs and improved its turnover by three per cent, resulting in higher margins.

Bank of Valletta declined 7c2 or 1.8 per cent on low volume selling activity. After Wednesday's close, the company announced that the government would be ceasing its proactive marketing efforts to sell its shareholding in the bank.

Some investors considered this news as negative and booked profits all the way down to the Lm3.87,8 level.

HSBC Bank Malta remained the most actively traded equity with 21,637 shares being exchanged across 28 transactions. The equity declined 3c9 or 1.9 per cent to close at the Lm2.04 level.

Two investors swapped 304 shares in Lombard Bank at the Lm4.65 level which represents a 5c or one per cent premium to its previous closing price.

Elsewhere in the market 2,400 shares of Maltacom where exchanged across five transactions with the price recovering from a 3c decline to close unchanged at Lm1.65, while 2,030 shares of Middlesea Insurance were swapped without affecting its previous price of Lm2.04,9.

Europe lifted by oil and mining stocks

The Nikkei jumped sharply to its highest close in almost five months yesterday, boosted by the strong overnight performance of US stocks. The Nikkei 225 leapt 2.3 per cent to 16,449.33. The broader Topix rose two per cent to 1,633.20.

European stocks extended recent gains, with miners and oil stocks in the vanguard of the advance as metals and crude prices rose on commodities exchanges. In early trade, the FTSE Eurofirst 300 was up 0.6 per cent, Frankfurt's Xetra Dax gained 0.6 per cent and the CAC 40 in Paris added 0.6 per cent.

Oil stocks took their cue from an overnight rally for crude prices. Opec, the oil producer cartel, informally agreed on the need to cut output by at least one million barrels a day to keep prices in the $50-$55 a barrel range. Fears that output cuts would thin global inventories prompted a rally in crude prices, which left Nymex crude back at $60 a barrel in early trade.

London equities had a positive start to trade, opening sharply higher on strength in commodity stocks and bid speculation surrounding steelmaker Corus Group. The FTSE 100 was trading 0.7 per cent higher in early exchanges, led by Corus which jumped to the top of the leaderboard.

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