Financial news

The mid-week session at the Malta Stock Exchange was characterised by significant trading in government stocks, where a total of 15 different issues were involved in the day's activity.

Trading on the equity market was mainly centred among the big caps, with prices in general moving fractionally lower.

The MSE index reversed the previous day's gains, falling by 10 points, or 0.20 per cent, to close the session below the 5,000 level, where it has been hovering in the past few days.

Leading the decline were the shares of the two major banks which lost a penny each. HSBC Bank Malta ended the session at Lm2.01 where it has been highly supportive in the past few months.

Much lower volumes were transacted in Bank of Valletta shares where turnover reached a mere Lm20,687 in value. The day's activity was undertaken within a very narrow trade range between the opening price of Lm3.70 and the closing price of Lm3.69.

Also in the banking sector, FIMBank shares trading unchanged at US$1.70 as 22,487 shares changed hands across five deals.

Against this backdrop, shares of Maltacom managed to notch up a minimal gain when the share price advanced by 1c to close at Lm1.56. The day's activity was limited to a mere 4,200 shares which were executed over three deals. No change in price was registered in the other equity trading during the session, namely MIA where aggregate turnover amounted to Lm7,528.

On the fixed income market activity was widespread, with a series of one deal transactions in a number of issues. Prices of government bonds moved lower across the board, as the market continued to adjust to the recent rate hike by the Central Bank of Malta.

Wall Street set for weak start

European stock markets edged lower yesterday as expectations of losses later on Wall Street prompted profit taking. By midday, the FTSE Eurofirst 300 was down 0.6 per cent, Frankfurt's Xetra Dax shed 0.7 per cent, the CAC 40 in Paris was down 0.6 per cent and London's FTSE 100 lost 0.6 per cent. London-listed miners were the biggest downside weight as metals prices fell. BHP Billiton shed 2.3 per cent, while Xstrata lost 1.7 per cent.

The Nikkei 225 average closed at its lowest level in a month, as investors sold shares of telecoms and internet giant Softbank ahead of its earnings announcement. The Nikkei 225 fell 1.1 per cent, while the broader Topix index dropped 1.2 per cent.

Wall Street stocks were set for a lower open, as investors mulled the outcome of the US mid-term Congressional elections. Beyond the elections, the earnings season continues with results due from Federated Department Stores, Cablevision Systems and Cisco Systems.

Less than an hour before the opening bell, stock index futures were sinking and well under fair value, indicating a weaker start to trading. S&P 500 futures were down 6.8 points while Nasdaq futures were down 10.8 points. Futures for the Dow Jones Industrial Average were down 46 points.

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).