Financial News

Trading activity continued to dwindle during yesterday's session at the Malta Stock Exchange with most investors waiting on the sidelines before committing their orders to the market. As a result, the MSE index gently drifted lower on mild profit taking activity, closing the day at 5,071 points. This activity was particularly evident in International Hotel Investments which declined by 2.6 per cent, a day after registering its all-time high of €1.13. Buyers were still evident in the market, grabbing a total of 30,439 shares, with the price finally settling at €1.10. Today, shareholders are expected to vote on five resolutions during an extra-ordinary general meeting of the company.

The day's top gainer was Medserv which climbed by 2c or 1.5 per cent to reclaim its record high of Lm1.40, after the company won a court ruling against the Commissioner of Lands.

Plaza Centres closed the day on a positive note, adding 0c9 or 1.3 per cent to its previous price as 6,000 shares were purchased at Lm0.71, its highest level since May 2005. Activity in the banking sector of the market was particularly dismal with barely 10 trades executed across three equities.

Bank of Valletta attracted the lion's share of those transactions as 2,000 shares were struck across six deals helping the price gain 0c9 or 0.25 per cent to close at Lm3.679. On the contrary, HSBC Bank Malta closed slightly weaker as 1,250 shares were sold at the Lm2.095 level just as the opening bell rung out. Elsewhere 10,000 shares of FIMBank were exchanged without affecting its previous closing level of $1.73. Activity in GlobalCapital, Middlesea Insurance and Maltacom did not affect their previous closing prices of Lm2.125, Lm2.04 and Lm1.48, respectively.

In the fixed interest sector of the market, activity was spread across four corporate bonds and five government stocks. With the exception of the 6.15 per cent Bank of Valletta 2010 which gained 50 ticks to close at Lm105, all other fixed interest securities traded remained unchanged or drifted lower in price.

European commodity stocks decline

European equity markets fell yesterday as losses in the heavily-weighted banking, resources and telecommunications sectors offset gains for airlines and luxury goods. Airline stocks were higher as investors bought into the sector on the back of lower oil prices. There was also some relief that none of the leading carriers had expressed interest in buying loss-making Alitalia, Italy's flag carrier, after the deadline for first-round offers ended yesterday. In early trade, the FTSE Eurofirst 300 was down 0.1 per cent, Frankfurt's Xetra Dax was little changed at 6,724.37 and the CAC 40 in Paris fell 0.2 per cent. In London weakness in the heavyweight mining sector dragged the FTSE lower. In the wider market, the FTSE 100 was down 18.6 points at 6,221.5 in late morning trade. In the mid-caps, the FTSE 250 was broadly flat at 11,105.1.

Falls in steel and consumer finance stocks counterbalanced rises in securities companies, leaving Japan's main indices little changed. The Nikkei 225 stock average and the broader Topix index fell 0.1 per cent respectively.

US stock-index futures were little changed before a report that will indicate whether consumer confidence is improving. The Federal Reserve begins a two-day meeting on interest rates today.

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).