The MSE index traded flat during the mid-week session at the Malta Stock Exchange yesterday as gains in Maltacom and Middlesea Insurance were offset by a slim decline in HSBC.

HSBC Bank Malta remained the most actively traded equity with 100,476 shares being exchanged across 84 transactions. Trading got off to a slow start with just a handful of trades being executed at and slightly below its previous closing level of Lm2.01. However, after an hour of trade, a single sale order for 58,485 shares was executed in rapid succession across 44 transactions, exactly clearing all demand down to the Lm2 level.

Activity in Bank of Valletta dwindled drastically following Tuesday's high volume action. In fact the day's activity consisted in 3,406 shares which were swapped across nine transactions, with the price wobbling slightly but closing unchanged at the Lm3.60 level.

Middlesea Insurance was the day's top gainer as 1,244 shares were exchanged across three transactions. Initially, the equity dropped 6c to the Lm2 level, however, late in the session a final purchase order was executed at Lm2.10, helping the equity not only to trim its losses but also close 4c or 1.9 per cent higher at Lm2.10.

Maltacom shares gained 1c9 or 1.3 per cent as selling activity disappeared. This left bidders with no other option but to raise their prices to the Lm1.50 level, for the first time this week. Volume activity was ludicrously thin with just 2,100 shares changing hands across two transactions.

Europe and London rebound modestly

European equity markets moved higher by mid-morning yesterday, staging a modest recovery after five consecutive days of trading losses. The FTSE Eurofirst 300 gained 0.7 per cent while the German Xetra Dax added 0.6 per cent as did the French CAC.

London equities moved higher, following six consecutive sessions of losses, helped by bid speculation among financial stocks and strength in the mining sector. Financial services stocks rose amid fresh takeover speculation. The FTSE 100 rebounded 38.9 points, or 0.6 per cent, to 6,065.3, after a fall of 2.9 per cent over the last six sessions. The mid-cap FTSE 250 surged 162.9 points, or 1.5 per cent, to 10.659.1. The rise followed gains overnight on Wall Street and on Asian markets.

Unexpectedly strong domestic production figures pushed Japanese share prices higher. Automakers and other export-oriented companies rose higher, with Toyota Motor - the number one carmaker - climbing 1.5 per cent to Y6,930. Nissan Motor moved ahead a more modest 0.7 per cent to Y1,399. The Nikkei 225 rose 1.4 per cent, closing at 16,076.20 - the first time it has cleared the 16,000 barrier in over a week. The broader Topix index climbed 1.6 per cent to 1,580.10.

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