Friday high for Index

A reverse in direction by the largest capitalised company on the Malta Stock Exchange helped the index close the week on a positive note at 5,131 points.

Buying activity in HSBC Bank Malta overcame a slight bout of profit-taking, helping the price spring back up to the Lm2.07,9 level yesterday. The day's activity consisted in 11,276 shares which changed hands across 16 trades helping the price advance by 3c9 or 1.9 per cent.

Bank of Valletta was the day's most actively traded equity with a grand total of 15,068 shares, carrying a market consideration of Lm59,602, changing hands across 23 transactions. Initial selling activity saw the equity decline all the way down to the Lm3.94 level before fresh buying activity trimmed the day's losses to just 0c9 or 0.2 per cent, with the price terminating at Lm3.97. The bank will be reporting its full-year results following a board meeting which will be held on October 27.

Lombard Bank was the day's top gainer, as the equity returned in favour with investors, who purchased 3,960 shares up to 2.8 per cent higher at the Lm4.81 level. Middlesea Insurance too climbed, with investors deeming the recent slide in price had gone too far too quickly, and the equity recouping a full percentage point on 5,200 shares traded, to close at Lm2.02.

Maltacom clawed back a penny as 5,120 shares were struck across four deals, while profit-taking activity hit GlobalCapital with the equity declining 2c or 0.9 per cent to terminate at Lm2.23.

FTSE 100 follows Dow higher

European stocks moved to a fresh five-year high in morning trade yesterday, as higher oil and metal prices boosted mining and energy companies. Crude oil rallied after Opec decided to cut supply by a larger than expected 1.2 million barrels per day. Investors had expected a cut of around one million barrels per day and the rise in oil to $59 a barrel was accompanied by a better tone for metal prices. The FTSE Eurofirst 300 index gained 0.6 per cent to its highest level since June 2001. Frankfurt's Xetra Dax added 0.5 per cent and France's CAC 40 index was higher by 0.6 per cent.

The London market pushed on towards a fresh five-year high after the Dow Jones Industrial Average closed above 12,000 for the first time. With oil and mining stocks in the ascendancy, the FTSE 100 was ahead 0.25 per cent at 6,188.8 - its highest intra-day level since February 2001. Elsewhere, the FTSE 250 gained 0.2 per cent. The heavily weighted oil sector spearheaded this morning's advance.

Japanese stocks rose, boosted by earnings upgrades and yen weakness against the dollar. The Nikkei 225 stock average closed up 0.6 per cent. The broader Topix was 0.5 per cent higher.

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)