Financial news

The MSE index could not manage to close in positive territory during yesterday's trading session at the Malta Stock Exchange and consequently registered its fifth consecutive session of decline to close the week at 5,049 points.

The drop was mainly due to weakness in Bank of Valletta shares which traded in relatively low volume, against a background of a general lack of interest in the equity sector of the market. The day's activity consisted of 3,230 shares which were swapped across seven transactions, thereby squeezing the price lower by Lm0.009 to Lm3.651.

HSBC Bank Malta was once again the most liquid and actively traded equity with an aggregate total of 11,924 shares changing hands across eight transactions. The price wobbled slightly. However, it still managed to close the day unchanged at Lm2.08.

Lombard Bank too managed to close the session unchanged at the Lm5.409 level as 1,500 shares were exchanged across two transactions within 20 minutes of the opening bell.

International Hotel Investments continued to rise, gaining a further 0.9 per cent as 7,564 shares were purchased across four transactions. Initially, the equity declined to the €1.11 level. However, persistent buying activity kept the price momentum going, pushing the closing price to a new all time closing high of €1.14. Investors currently purchasing or holding shares, are still doing so with the right to receive a one for six bonus share on a yet to be specified date in the future.

Otherwise, in the other trade of the day, two investors swapped a mere 96 shares of Simonds Farsons Cisk without affecting its previous closing price of Lm0.82.

European stocks rise led by merger moves

European equity markets were a little stronger yesterday, extending six-year highs, as utility stocks rose on fresh merger moves in the sector. Gains were capped, however, after disappointing results from Ericsson. By mid-morning, the FTSE Eurofirst 300 was up 0.2 per cent, Frankfurt's Xetra Dax added 0.2 per cent and the CAC 40 in Paris gained 0.3 per cent.

Trade was cautious, however, as investors awaited US employment data later in the session. This was the case on Wall Street overnight as the Dow Jones Industrial Average edged up 0.4 per cent and the Nasdaq Composite added 0.2 per cent.

In London J Sainsbury was the early leader on the FTSE 100 in the morning as the main index continued to build on strong gains from the previous session. The blue-chip index gained 0.4 per cent, in morning exchanges while the mid-cap FTSE 250 put on 0.5 per cent.

The Nikkei index reached a six-year peak yesterday morning, boosted by strong corporate results, before ending the day at a more modest 10-month closing high. The Nikkei 225 closed up 0.2 per cent as did the broader Topix.

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.