Financial news

Local equities commenced 2007 on a negative note as prices declined across the board during yesterday's trading session at the Malta Stock Exchange as investor sentiment remained unenthusiastic about current valuations, notwithstanding the fact that prices have weakened for the past nine months.

Banking sector equities weighed heavily on the MSE Index which shed 1.7 per cent to close the day at 4,788 points. HSBC Bank Malta in particular gave up 4c or 2.1 per cent as 39,624 shares were exchanged across 37 transactions, bringing the price down Lm1.86, its lowest level in 13 months.

Lombard Bank gave up all the gains registered during the final session of last year as two investors swapped 500 shares at the Lm5.50 level.

Bank of Valletta declined 10c or 2.7 per cent as 2,864 shares were exchanged across 11 trades. The equity closed the session at Lm3.60 leaving 2,895 shares best bid at Lm3.58 against supply of 500 shares at the Lm3.62 level.

FIMBank traded unchanged at the $1.73 level although activity consisted of merely 857 shares which were exchanged across a single transaction.

Middlesea Insurance tumbled to their lowest level in 12 months as a sale order of 824 shares was executed in rapid succession across three transactions squeezing the price down by 1.5 per cent to Lm1.95.

Malta International Airport was the sole equity to register any gains, with the price climbing by 0c4 or 0.3 per cent as 4,627 shares were purchased across two transactions. At the end of the session, 2,000 shares were best bid at Lm1.33 while supply was for 700 shares at the Lm1.38 level.

Cautious trade on European markets

European equity markets were a little lower by midday yesterday as profits were taken following the previous session's strong rally. By midday, the FTSE Eurofirst 300 was down 0.1 per cent, while the CAC 40 in Paris was 0.2 per cent lower. Frankfurt's Xetra Dax was fractionally lower at 6,664.75 despite German unemployment falling from 10.1 per cent to 9.8 per cent, its biggest fall since reunification.

The roaring start to the year made by London's equity markets ground to a halt yesterday as investors booked profits and waited for key data out of the US which reopens after an extended holiday. The FTSE 100 was trading 0.1 per cent lower by mid-morning as miners weighed on sentiment, while the mid-cap FTSE 250 put on just 4.1 points to 11,316.6.

Wall Street resumed trading yesterday, having missed out on the global rally on Tuesday. All eyes are on the ISM manufacturing index data which was delayed due the closure of the New York Stock Exchange and Nasdaq out of respect for former President Gerald Ford. The futures were suggesting Wall Street will play catch-up with the rest of the world and would open strongly.

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