MSE index below 5,000

Trading in equities flourished during the final session of the week at the Malta Stock Exchange as investors actively exchanged holdings. The MSE index, however, dipped below the psychological level of 5,000 after almost one month.

Weakness in HSBC Bank Malta was the main culprit behind the index decline as the market heavyweight shed 5c or 2.4 per cent on sustained selling activity. The day's activity consisted of almost 55,000 shares which were exchanged across 62 transactions, dragging the price down to the Lm2.01 level.

Bank of Valletta recouped 1c2 or 0.3 per cent as renewed buying activity supported the price up to the Lm3.70 level. All investors purchasing shares during the session did so with the right to receive an 11c dividend announced by the bank last week. At the end of the session, 2,000 shares were best bid at Lm3.68 against supply of 1,440 shares offered at Lm3.75.

Buying activity in Lombard Bank saw 3,436 shares being picked up from the offer side, helping the price gain 2c or 0.4 per cent in the process to terminate the week at Lm4.83, its highest level in two and a half months. A similar monetary gain was registered by Middlesea Insurance which climbed the equivalent of 0.9 per cent to Lm2.22, while International Hotels Investments declined 1.9 per cent on profit taking activity which saw investors selling 17,100 shares down to the €1 level.

Buyers and sellers in Malta International Airport, Maltacom, Medserv, Plaza Centres and Datatrak all met at the previous closing prices. Volume activity was healthy and spread across a multiple number of deals.

FTSE flat as BA shares fall

Banks led a modest rally for European equities on yesterday as Germany's Commerzbank reported positive third-quarter results, while oil stocks bounced in spite of further losses for crude oil prices. By mid-morning, the FTSE Eurofirst 300 was up 0.1 per cent to 1,444.55, Frankfurt's Xetra Dax added 0.2 per cent to 6,232.71 and the CAC 40 in Paris nudged fractionally higher to 5,311.98. London's FTSE 100 was flat at 6,147.4.

London equities markets were little changed, with losses for British Airways and limiting gains generated by BSkyB after it reported strong subscriber growth in the first quarter. Shares in British Airways fell 0.9 per cent to 461p in the wake of its interim numbers.

The FTSE 100 started the day 0.1 per cent higher at 6,157.2, a rise of seven points. The FTSE 250 was also 0.1 per cent firmer at 10,406.2, a gain of 12 points.

Overnight Wall Street stocks declined, hit by generally weaker sales figures from leading retailers and a surprising stall in US productivity during the third quarter. The S&P500 settled 0.03 per cent, lower and the Nasdaq Composite was 0.01 per cent, lower. The Dow Jones Industrial Average closed down 0.1 per cent, at 12,018.54, having earlier slipped below 12,000.

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).