Financial news

The MSE index failed to book its fourth consecutive session of gains and instead dropped slightly by just 0.24 per cent as investors cautiously booked profits.

This was particularly evident in HSBC Bank Malta which dropped 2c or 0.97 per cent as 14,315 shares were sold across fourteen transactions. Low volume activity was initially struck at the Lm2.07 level; however, as the session progressed more sellers came to the fray, clearing all demand up to the Lm2.05 level by the end of the session.

Bank of Valletta was the day's most liquid and actively traded equity with 12,638 shares, carrying a market consideration of almost Lm50,000, being exchanged across 20 transactions. Buyers were the more determined force in the market, helping the price advance by a further 2c to close at Lm3.97, its highest level in 10 weeks.

Buying activity in Maltacom remained sustained with 2,527 shares being exchanged at the Lm1.65 level. Although no change in price was registered, all supply at this level has been cleared leaving the next best offer for 2,500 shares at Lm1.67.

Elsewhere in the market, Plaza Centres climbed 0c5 or 0.75 per cent as 5,000 shares were purchased across two trades helping the price settle at 67c5.

Santumas Shareholdings plc, the closed ended collective investment scheme, shed 20c or 15.4 per cent as 1,610 shares were sold across three transactions at the Lm1.10 level. An acute lack of liquidity in this security, means that the price swings abruptly due to the wide bid/offer spread.

Tokyo stocks slide

European stocks edged higher yesterday as truckmakers rallied following strong results from takeover target Scania, which repeated its rejection of rival MAN's offer. By midday, the FTSE Eurofirst 300 was up 0.2 per cent, Frankfurt's Xetra Dax rose 0.2 per cent, London's FTSE 100 climbed 0.3 per cent and the CAC 40 in Paris added 0.2 per cent.

Japanese stocks erased modest morning gains to close down, hit by falls in banking stocks. This hit the Topix particularly hard, since it has a strong weighting in bank shares. The Topix fell 0.5 per cent while the Nikkei 225 was down 0.2 per cent. However, the Mothers market of smaller growth stocks recovered slightly after heavy losses the previous couple of days. The index rose 0.9 per cent. Banking plunged 2.3 per cent, hit by UBS's decision to cut its target price for some of the biggest financial institutions.

US stocks closed lower overnight as investors grew cautious following a mixed batch of corporate earnings. At the close, the S&P500 was down 0.3 per cent, while the Nasdaq Composite was down 0.3 per cent. The Dow Jones Industrial Average slid 0.1 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)