Financial news

Local equities traded flat during a relatively dull trading session at the Malta Stock Exchange yesterday, although the activity in the fixed interest sector of the market was livelier.

Activity in HSBC Bank Malta dwindled down to just 10 trades for a combined activity of 7,608 shares. Most of the day's activity was conducted without changing the previous closing level of Lm2.02.

Activity in Bank of Valletta consisted of 3,110 shares which were exchanged across seven transactions. The price fluctuated slightly but still managed to close unchanged at Lm3.60.

Lombard Bank was the day's only gainer, with renewed buying activity helping the price reclaim its Lm5 level for the first time since mid-August 2006. The day's activity consisted in 3,810 shares which were purchased across three transactions, gradually pushing the price higher by 2c or 0.4 per cent. At the end of the session, a further 1,000 shares were demanded at the closing price, while supply was for 500 shares at a lofty Lm5.97.

Investors nibbled at Maltacom shares on offer at the Lm1.50 level throughout the session although in the final deal of the day, executed a quarter of an hour before the market closed, an investor sold his holding to the best awaiting bid of Lm1.49. The equity failed to trade again, and subsequently closed 1c or 0.7 per cent lower, when compared to its previous closing price.

Activity in International Hotel Investments continued to remain robust with two investors swapping 10,000 shares across a single transaction without affecting its previous closing level of €1. Similarly, 1,375 shares of Santumas Shareholdings changed hands without altering its Lm1.15 price.

European stocks reach fresh record levels

European equity markets moved to fresh five-and-a-half-year highs as oil stocks rallied, while techs were led by Nokia. Nokia, the mobile phone handset maker, gained three per cent after research showed it had extended its market share in the third quarter. By midday, the FTSE Eurofirst 300 was up 0.5 per cent as was Frankfurt's Xetra Dax while the CAC 40 in Paris gained 0.6 per cent.

London equities were higher at midday following steady sessions in the US and Asia overnight. ICI shares leapt on disposal news. By midday, the FTSE 100 was up nine points to 6,211.9 while the mid-cap FTSE 250 was up 16.4 points, or 0.2 per cent, to 10,768.6.

The Mothers market of smaller growth stocks rebounded from the week's recent losses, leaping six per cent. The Nikkei 225 rose 1.1 per cent and the broader Topix index closed 1.3 per cent higher. On Tuesday Wall Street indices inched higher in New York but several high-profile stocks broke the market's shackles in advance of the Thanksgiving holiday later this week. The imminent long weekend break is expected to cap the recent run in stocks but some analysts believe the market has further room to rally in the coming weeks.

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Valletta Fund Management (tel. 8007 2344) and Bank of Valletta plc (tel. 2131 2020)