Financial news

Pockets of strength in the market helped the MSE index climb by a full percentage point as sellers abated and investors deemed that the recent slide in prices provided good entry point for their finances.

HSBC Bank Malta was the motor behind the day's climb, as the equity gained 5c or 2.5 per cent to close the session at the Lm2.08 level. The day's activity consisted in 8,605 shares which were exchanged across 14 transactions.

On the contrary, Bank of Valletta shares declined on profit-taking activity as investors cashed in on the recent rally which saw the price rise from the Lm3.70 within a few sessions. The day's activity consisted in 17,220 shares which were exchanged across 15 transactions, bringing a 1c or 0.25 per cent decline to its closing price which settled at Lm3.98.

Suncrest Hotels was the day's top gainer as the equity climbed almost seven per cent as two investors swapped 1,200 shares at the 26c7 level. Similarly, a single transaction in Santumas Shareholdings, the closed-ended collective investment scheme, helped the price close better by 5c or 4.5 per cent at Lm1.15.

GlobalCapital put in a positive showing as demand for shares hit a relatively thin bid side, pushing the price a full 12c or 5.7 per cent higher to close at the Lm2.22 level. The equity is just 3.1 per cent away from its all-time closing high of Lm2.29 registered on July 31.

European stocks hold modest gains

The London market bounced back with mining stocks in the ascendancy yesterday after a well received production update from Rio Tinto. The FTSE 100 was up 0.6 per cent clawing back around half Tuesday's losses. Lower down the market, the FTSE 250 rallied one per cent, with PartyGaming, up 4.8 per cent among the best performers on rumours of a bid from a Las Vegas gaming company.

European equity markets held modest gains by lunchtime, buoyed by forestry paper, mining and energy stocks. The FTSE Eurofirst 300 index gained 0.4 per cent. The index broke a nine-day winning streak when it slid one per cent on Tuesday. Frankfurt's Xetra Dax and France's Cac 40 were up 0.5 per cent respectively.

Japan's large-cap stock indices were left little changed, with strong interest from retail investors countering soured sentiment on many exporters because of US stock weakness and the stronger yen. The Nikkei 225 rose 0.3 per cent. But the broader Topix was up only 0.1 per cent.

Wall Street closed lower on Tuesday as disappointing economic data weighed on stock prices in spite of takeover activity and strong earnings reports. At the close of trading, the S&P 500 index was down 0.36 per cent. The Dow Jones Industrial Average fell 0.26 per cent, while the Nasdaq Composite was 0.8 per cent lower.

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).