Financial news

Equity prices nudged even lower during yesterday's trading session at the Malta Stock Exchange although pockets of strength sustained the Index which closed just 0.27 per cent lower at 4,848 points.

HSBC Bank Malta was by far the most actively traded equity with 62,579 shares being exchanged across 38 transactions.

Sellers were the dominant force on the market, squeezing the price down to Lm1.95, its lowest level since January, before relief buying activity trimmed the day's decline to 1c5 or 0.7 per cent with the price closing the day at Lm1.95,5.

For the second consecutive session, Lombard Bank was the top gainer at the Exchange as 5,032 shares were purchased across four transactions, lifting the price by 10c or 1.9 per cent to Lm5.30. At the end of the session, 1,000 shares were best bid at Lm5.15 against supply of 2,228 shares at Lm5.40. Bank of Valletta recouped its previous session's minimal decline as 3,400 shares were struck across six deals, helping the equity close the session back at Lm3.59.

FIMBank was the day's most liquid equity with 67,900 shares carrying a market consideration of $115,430, being exchanged across five deals. All trades were executed at the $1.70 level.

Trading in Medserv was relatively strong, as 9,850 shares were exchanged across three transactions at the Lm1.35 level. Medserv has the lowest amount of free floating shares with just 25 per cent from the total of 10 million issued.

A single transaction for just 116 shares of Middlesea Insurance brought a 2c decline to the equity price which closed below the Lm2.00 level for the first time in two months, while Maltacom traded unchanged at Lm1.45.

Inflation news makes pressure on Wall Street

A lacklustre start to Wall Street's week clipped trading in Tokyo yesterday, providing investors with an excuse to lock in gains made over the past six days. The bull-run that on Monday brought the Nikkei 225 stock average close to the 17,000-point mark ground to a halt. The Nikkei slid 1.1 per cent to end the session at 16,776.88, while the broader Topix index fell 1.2 per cent to 1,645.40.

US stocks were set for a lower open, after an unexpected surge in production level inflation last month. Markets were already looking soft amid weakness in global markets overnight, as stocks in Thailand suffered a sharp fall amid tighter capital controls, and that mood intensified when the Producer Price Index report for November arrived. S&P 500 futures were down 3.4 points at 1431.40 while Nasdaq futures were down 11 points at 1800.

Britvic shares outperformed a weak London market as hopes of a bid were given further fizz by reports that private equity group Permira had bought a 9.2 per cent stake in a soft drinks company. The benchmark was down 28.6 points, or 0.5 per cent, to 6,218.8 in late morning trade while the mid-cap FTSE 250 lost 47.2 points, 0.5 per cent, to 11,040.1.

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