Sellers dominate proceedings

Equities had a lacklustre session yesterday at the Malta Stock Exchange, with activity only spread across the three largest listed companies.

Relatively speaking, HSBC Bank Malta remained the most actively traded and liquid equity with 30,143 shares carrying a market consideration of Lm60,611 being exchanged across 29 transactions. The equity registered an early lead, tentatively climbing to the Lm2.01,5 level, however selling pressure trimmed back the intra-session gain and the price closed unchanged at Lm2.01.

Bank of Valletta sunk to its lowest level in two months as merely 1,880 shares were exchanged across five transactions. The popular equity has been plagued with an acute lack of interest since the company reported its full-year results towards the end of October, which detailed a record profit before tax of Lm38,358,000. Nevertheless, the equity closed yesterday's session 1c lower at Lm3.64, leaving 2,500 shares best bid at Lm3.62,5 against supply of 1,420 shares offered at Lm3.64.

Maltacom shares drifted lower by a penny as 12,699 shares were exchanged across seven transactions. In excess of Lm1,000,000 worth of market capitalisation was lost during the session with the equity closing at the psychological support level of Lm1.50, its lowest level since September 2005, and 3.4 per cent lower than what Tecom Investments paid the government of Malta for its 60 per cent stake in May 2006. At the end of the session the best bid was for 1,500 shares at Lm1.46,1 compared to 1,500 shares best supplied at Lm1.50.

The MSE Index closed the session weaker by 0.14 per cent at 4,939 points.

National Grid places London in positive territory

European equities were flat yesterday as losses for financial and oil stocks offset gains for carmakers. By midday, the FTSE Eurofirst 300 was flat at 1,470.83, Frankfurt's Xetra Dax was marginally lower at 6,425.91, the CAC 40 in Paris fell 0.2 per cent.

London equities reversed opening losses by mid-morning as strong interim numbers from National Grid offset poorly received results from Vedanta Resources. National Grid jumped to the top of the FTSE 100 leaderboard, up 5.1 per cent, after interim profit and earnings both rose 12 per cent. The FTSE 100 and the FTSE 250 were up 0.2 per cent respectively by mid-morning.

Japanese stocks erased mild morning gains to fall, ahead of a scheduled briefing from the Bank of Japan which kept the interest rate unchanged earlier in the day. The Nikkei 225 was 0.5 per cent lower. The Topix fell 0.6 per cent.

Wall Street stocks settled off their peaks in New York on Wednesday, as the transport sector soared following a huge proposed deal between two US airlines. Fresh from setting new record closes for large and small capitalisation stock indices on Tuesday, equities attracted further buying.

The financial news was compiled by Valletta Fund Management (tel. 8007 2344) and Bank of Valletta plc (Tel 2131 2020). BOV and VFM are licensed by the MFSA to conduct investment services business.