Resilient HSBC bounces back

Equities seemed to be heading to a negative close during yesterday's trading session at the Malta Stock Exchange. However, last minute buying activity in HSBC Bank Malta helped the MSE index eke out a 0.1 per cent gain to close the day at 4,919 points.

Initial selling activity in HSBC Bank Malta saw the price drop a penny below the psychological support level of Lm2. Bids at Lm1.99 level were regularly filled. However, when supply dried up, investors were left with no other option but to increase their bids, thereby helping the equity close the day 1c or 0.5 per cent higher at Lm2.01.

Bank of Valletta was the day's most liquid and actively traded equity with 16,984 shares, carrying a market consideration of Lm61,069 that were exchanged across 22 trades. The equity traded within a tight range, dropping to a low of Lm3.59. Similarly to HSBC, buyers left it till late in the session to commence their buying activity and almost trimmed the day's losses completely. The equity closed at Lm3.59,9, leaving 1,000 shares best bid at Lm3.58,5 against supply of 500 shares at Lm3.59,9.

Two investors swapped a mere 150 shares of Malta International Airport at the Lm1.34 level soon after the opening bell rung out. This level reflects a 0c5 or 0.4 per cent premium to its previous closing level.

GlobalCapital were the day's biggest decliners as 160 shares were sold in the very last minute at the Lm2.10 level, which represents a decline of 10c5 or 4.7 per cent. Elsewhere in the market Maltacom shares declined by the slimmest of margins to Lm1.49,9 while International Hotel Investments maintained their €1 level unaltered.

Oil stocks leave positive impact on European markets

European equities were higher yesterday as gains in the energy sector offset losses for financial services stocks. By midday, the FTSE Eurofirst 300 was up 0.1 per cent Frankfurt's Xetra Dax gained 0.4 per cent and the CAC 40 in Paris added 0.1 per cent.

Wolverhampton & Dudley was the main talking point in a quiet London market. Shares in the pub company, which also owns Marston's brewery, rose 4.3 per cent to a record high of £16.07 on speculation of a £20-a-share private equity bid approach. In the wider market, the FTSE 100 recovered from an early wobble to trade 0.3 per cent, higher lifted by strong overnight performances from Asian markets and Wall Street.

Japanese stocks rose, responding to overnight gains in US markets from strong economic figures. The Nikkei 225 closed up 1.2 per cent and the Topix rose 1.5 per cent.

Wall Street stocks made healthy gains on Wednesday as the market welcomed the release of encouraging third quarter gross domestic product data and some positive news from Tiffany and Ford. More than 35,000 hourly workers at Ford, almost half its US factory staff, have taken offers from the carmaker to leave the company. Ford shares gained 0.25 per cent.

The financial news was compiled by 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.