Financial news

The MSE index registered its second consecutive day of gains during yesterday's trading session at the Malta Stock Exchange with strength in BOV and Lombard outweighing declines elsewhere in the market.

Bank of Valletta was the day's top gainer as 31,838 shares were purchased across 31 transactions. The equity initially traded at its previous closing price, however, demand was plentiful and the price climbed gradually. Towards the end of the session, the equity jumped to the Lm3.60 level, helping the share close 6c5 or 1.8 per cent higher.

Lombard Bank traded in large chunks as 18,436 shares were exchanged across five transactions. Most of the deals were match business with bids and offers appearing suddenly on the market, and negotiated at the agreed price. Nevertheless, the equity gained 2c or 0.4 per cent to close the session at Lm5.12, its highest level in three months. HSBC Bank Malta's price remained stuck to the Lm2.01 level throughout the entire session, thereby forcing a slim decline to its pervious closing level.

A grand total of 47,471 shares were exchanged during the day across 23 transactions, for an aggregate turnover value of Lm95,416.

Elsewhere in the market, 11,100 shares of FIMBank were exchanged across two transactions without affecting its previous closing price of $1.70.

GlobalCapital was the day's top decliner as 1,500 shares were sold across four transactions, thereby forcing the price lower by 8c5 or 3.7 per cent to Lm2.20,5.

Maltacom declined slightly under continued selling pressure which saw 5,300 shares sold across six transactions. The equity declined 0c9 or 0.6 per cent to Lm1.48,1, its lowest level for two weeks.

Europe markets steady

European equity markets steadied by mid-morning after early weakness following sharp overnight declines on Wall Street. The FTSE Eurofirst 300 traded 0.3 points higher at 1,429.26 while the German Xetra Dax lost 8.2 points or 0.1 per cent at 6,290.1 but the French CAC 40 added 4.6 points or 0.1 per cent at 5,313.22.

A volatile session for London equities amid continued concern about the weak dollar and the effect on the US economy. With the greenback trading at a fresh 20-month low against the euro, the FTSE 100 fell to a fresh six-week low of 6,016.2 in early trade. The dollar's slide caused sharp falls on Wall Street overnight, with the Dow Jones Industrial Average losing more than one per cent. By late morning, the FTSE 100 was down 14 points, or 0.2 per cent, to 6,036.1.

Shares in Hong Kong suffered their worst one-day fall in percentage terms for six months yesterday as fears that the market's recent record-breaking rally might have been overdone were sparked by sharp overnight losses on Wall Street. The Hang Seng index plunged 564.48 points, or 2.9 per cent, to 18.639.53, its lowest close since November 1.

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)