Medserv at highest level

The MSE index closed modestly lower during yesterday's session at the Malta Stock Exchange as slight selling activity in Bank of Valletta dragged the market lower. As a result the index closed 0.25 per cent lower at 5,144 points.

HSBC Bank Malta attracted the highest value of business with 13,135 shares being exchanged across 20 transactions. During the session the price climbed to touch the Lm2.10 level. However, at this stage sellers appeared and brought the price back to its original starting price of Lm2.08.

Lack of demand in Bank of Valletta saw the price shed 4c or one per cent to close the session at Lm3.95, its lowest level in three weeks. Only 1,230 shares were struck, within the Lm3.95 and Lm3.97 trade range.

The day's top gainer was Medserv plc which rose by 4c or three per cent to Lm1.36. The day's activity consisted of 4,500 shares which were exchanged across two transactions for a total turnover of Lm6,040.

International Hotels Investments persisted at the €1.02 level where 23,000 shares were struck across eight transactions.

Elsewhere in the market, activity in Maltacom and Malta International Airport did not alter their previous closing prices of Lm1.58 and Lm1.38 respectively. An acute lack of liquidity characterised trading in these two equities.

In the fixed income sector of the market, activity was spread across seven corporate bonds and seven government stocks.

On Tuesday, the Central Bank of Malta raised the central intervention rate by 25 basis points to 3.75 per cent. Investors had already anticipated this move and as a result government stocks prices remained mostly unchanged, except for the 7.8 per cent MGS 2012 which lost 30 ticks to close the session at 118.29 per cent of par.

FTSE higher after Cairn flotation plans

European equity markets were a shade higher yesterday as banks dominated following merger updates from planned partners Banco Popolare di Verona e Novara and Banca Popolare Italiana. In early trade, the FTSE Eurofirst 300 was up 0.2 per cent, Frankfurt's Xetra Dax climbed fractionally to 6,270.62, the CAC 40 in Paris was flat at 5,348.88.

In London, the FTSE moved higher by late morning, helped by a strong showing across the mining sector and a positive reaction to Cairn Energy's plans to float its Indian business. Cairn Energy unveiled plans to raise about $1.8 billion from the floatation of its Indian business. The FTSE 100 extended its early gains to trade 0.4 per cent, higher while the mid-cap FTSE 250 added 0.3 per cent.

Overnight in New York, US indices were little changed as investors were caught between data showing falling consumer confidence on the one hand and robust corporate news flow. The Dow Jones Industrial Average ended about six points lower at 12,080.7, a fall of about 0.1 per cent.

The Nikkei 225 finished 0.2 per cent down at 16,375.26. But the broader Topix rose 0.3 per cent to 1,622.51, gaining from a rise in banking stocks, which have a strong weighting in the index.

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).