Financial news

Selling activity set the pace at the Malta Stock Exchange during yesterday's trading session with the index closing 0.7 per cent lower at 5,096 points.

Maltacom was the day's most actively traded equity with 36,850 shares, carrying a market consideration of almost Lm59,000, being exchanged across 18 transactions. All demand in the open market down to the Lm1.60 level was cleared, leaving a further 103 shares on the offer side at this price against demand for 4,250 shares at Lm1.59.

Weighed down by renewed selling activity, HSBC Bank Malta dropped 2c9 or 1.4 per cent, closing the session at Lm2.05, its lowest level of the day.

Bank of Valletta had a jittery session, as investors tread cautiously ahead of the company's full-year results which are due to be published on Friday. Initial selling activity dropped the price down to the Lm3.95 level. However, buyers left it till late in the day when their proceedings trimmed the day's decline to just 0c1, helping the equity close at Lm3.96,9.

Middlesea Insurance was the day's top gainer, as the equity pulled away from its recent lows, with investors snapping shares up to the Lm2.06 level. The day's activity consisted in 1,134 shares which were purchased across four transactions leaving 1,196 shares best bid at Lm2.05 against supply of 1,288 shares offered at a lofty Lm2.45.

Fresh buying activity in GlobalCapital helped the equity recoup Friday's entire decline as 3,706 shares were purchased at the Lm2.25 level, while elsewhere two shareholders swapped 10,100 shares of International Hotel Investments without affecting its pervious closing price of €0.96.

Nikkei closes at five-month high

European equities extended their losses by midday yesterday as gains for financial stocks and airlines were overshadowed by falling oil stocks as crude prices slipped. The FTSE Eurofirst 300 was down 0.1 per cent, while Frankfurt's Xetra Dax remained fractionally higher at 6,207.22. The CAC 40 in Paris fell 0.1 per cent.

London equities were treading water with little corporate news to sway the markets. The FTSE 100 was down 0.1 per cent, after initially trading higher in opening exchanges. The mid-cap FTSE 250 was down 0.2 per cent.

The Nikkei climbed to a fresh five-month closing high, buoyed by a strong rise in property stocks. The Nikkei 225 finished up 0.8 per cent to 16,788.82. The broader Topix rose 0.9 per cent to 1,659.39. The Nikkei's rise came after an early fall in morning trade on nerves over Japan's results season, which gets into full swing this week.

Wall Street stocks were set for a softer open, as the third quarter earnings season continues and the Federal Reserve meets today. About half an hour before the open, futures or the S&P 500 index were 2.20 points lower and below fair value. Meanwhile Dow futures were eight points lower. Nasdaq futures were 0.2 higher, but still under fair value.

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)