Financial news

Following a weekend reflection, investors returned to the market at the Malta Stock Exchange yesterday with cash in their pockets to purchase banking sector equities which have suffered the brunt of sellers over the past eight months.

Lombard Bank was the day's top gainer, both in monetary terms and percentage wise although activity consisted of just a single deal for 1,000 shares.

The trade was executed early in the morning at the Lm5.10 level, which represents a 10c or two per cent gain over Friday's closing price.

The day's most actively traded and liquid equity was HSBC Bank Malta, where 60,080 shares were exchanged across 43 transactions. The aggregate consideration of the deals amounted to Lm120,793, with the price wobbling slightly before closing minimally higher at Lm2.01,1. Demand was strong, and although supply was plentiful, at the end of the session the best offers totalled 5,000 shares at Lm2.05.

Bank of Valletta bounced back after Friday's tumble, regaining 3c5 or one per cent as 15,180 shares were transacted across 25 deals.

The equity immediately opened higher at Lm3.52 and continued to gain, as investors collected the steady trickle of supply that came to the market, deeming the recent decline in price had gone too far too fast.

Investor sentiment seemed reversed with sellers dictating the proceedings and the price movement.

Medserv recouped 2c or 1.5 per cent as 50,000 shares were swapped across a single transaction at the Lm1.35 level, while Maltacom shares shed 0c5 or 0.33 per cent as 3,972 shares were sold across seven transactions down to the Lm1.49 level.

Weak start to week for European equity markets

European equity markets made a weak start to the new trading week yesterday amid ongoing concerns about the impact of a weaker dollar on companies which generate a high proportion of their earnings in the US.

The FTSE Eurofirst 300 fell 0.2 per cent as did the German Xetra Dax. The French CAC 40 lost 0.3 per cent.

BAE Systems was a leading faller in London as the FTSE 100 dropped to a six-week low. By mid-day, the FTSE 100 was down 0.5 per cent, to 6,095.6, its lowest level since early October. However, the mid-cap FTSE 250 held steady at 10,586.1 thanks to bid speculation in the house building sector.

Japanese shares closed higher with gains in domestic-oriented stocks offsetting declines in top exporters. The benchmark Nikkei 225 average and the Topix index closed up one per cent respectively.

US stocks ended a week shortened by Thanksgiving on a weaker note on Friday but several companies notched up record highs in an indication of underlying bullish sentiment. The market is being supported by the prospect of a soft landing for the economy, a pile of private equity funds seeking new targets, equity volatility near historic lows and the fact many investors are being forced to chase the impressive performance of the market before the year ends.

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)