Maltacom at 14-month low

Trading activity in equities picked up slightly during the final session of the week at the Malta Stock Exchange although sellers remained the major force in the market, leading the index lower by 0.2 per cent to close the week at 4,929 points.

HSBC Bank Malta remained the most popularly traded equity on the floor of the exchange with a grand total of 30,040 shares changing hands across 22 transactions. The price wobbled slightly as the Lm60,387 worth of equity was exchanged but in the end, still closed unchanged at Lm2.01.

Activity in Bank of Valletta consisted of 7,085 shares that were exchanged across eight transactions. Initial selling activity saw the price drop to the Lm3.62,5 level, although later buys trimmed the day's decline to just 0c3 helping the price close the week at Lm3.63,7. At the end of the session, a further 3,000 shares were offered at this level against demand for 2.455 shares best bid at Lm3.62,5.

Further gloom was in store for Maltacom shareholders who saw another Lm2.43 million worth of market capitalisation being wiped off their collective valuation, as 10,299 shares were sold across nine transactions forcing the price to close at Lm1.47,6, its lowest level in almost 14 months. Nevertheless, by the close of the session, bids were in place at a higher level, albeit 350 shares were demanded at Lm1.48, while supply was for 1,500 shares at the Lm1.50 level.

Middlesea Insurance attracted 4,070 shares that were struck across two transactions, with buyers and sellers agreeing to trade at its previous closing price of Lm2.10. Similarly, 3,000 shares of Simonds Farsons Cisk were swapped across two trades without altering its 80c level.

Lower crude prices affect Europe's bourses

European equities fell as oil majors fuelled downside pressure after crude prices fell to their lowest levels in nearly a year overnight on forecasts of a mild winter in the northern hemisphere. By midday, the FTSE Eurofirst 300 fell 0.3 per cent to 1,468.59, Frankfurt's Xetra Dax shed 0.1 per cent to 6,439.23 and the CAC 40 in Paris lost 0.6 per cent to 5,473.18.

Heavyweight oil stocks were the biggest fallers on the FTSE 100 in morning exchanges after the price of crude oil fell below $56 a barrel. The main index was 0.2 per cent lower in mid-morning trade, while the mid-cap FTSE 250 was down 0.2 per cent.

Overnight falls in the price of oil hit Japanese resource stocks, but heavy oil users failed to rally, leaving the market down overall. The Nikkei 225 and the Topix fell 0.5 per cent lower respectively.

Overnight in the US, further evidence the economy is entering a soft landing helped propel the S&P 500 to its highest level in six years, with deals, earnings and technology stocks also in the spotlight.

Large capitalised stocks continued their bullish run of late, with the Dow Jones Industrial Average chalking up new record intra-day and closing levels.

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.