Financial News

The MSE index reversed five consecutive sessions of declines, as investors returned to the market following the weekend recess, with a keen determination to purchase equities. As a result the index gained 0.4 per cent to close the session at 5,068 points.

Maltacom was the day's top gainer with investors showing a certain degree of optimism in the equity which has traded range bound for the past seven weeks. The equity actually commenced trading lower, briefly touching the Lm1.45 level, before bouncing back to not only trim its losses but close higher by 2c or 1.4 per cent at Lm1.48. At the end of the session, 1,000 shares were best bid at Lm1.461 against supply of 528 shares at Lm1.48.

Bank of Valletta reversed all declines sustained over the past three sessions as fresh buying activity swept into the market. The equity was the day's most actively traded equity with 18,073 shares carrying a market consideration of Lm66,399, changing hands across 27 trades. The equity gained 2c9 or 0.8 per cent to climb back up to the Lm3.68 level.

Activity in HSBC Bank Malta was relatively muted with 7,149 shares struck across 13 deals. The price wobbled traded within a 1c range below the Lm2.08 level, but closed the session lower by the slimmest of margins at Lm2.079.

Continued buying activity in International Hotel Investments, helped the price gain another 0.9 per cent to close at a new record high of €1.15. The equity remained the most liquid with 31,877 shares swapping hands across seven transactions.

European equity markets flat

European equities were lower yesterday as financial stocks slipped on profit taking, offsetting gains for real estate groups and oil companies. By midday, the FTSE Eurofirst 300 was off 0.2 per cent, Frankfurt's Xetra Dax shed 0.2 per cent and the CAC 40 in Paris was flat at 5,677.83.

Johnson Matthey, the platinum trader, was a leading gainer in London. Noting the stock had under-performed the chemicals sector by 15 per cent over the last 12 months, UBS raised its price target from £14.90 to £18. Johnson Matthey was the leading FTSE 100 gainer, up 5.1 per cent to £15.69. In the wider market, stocks traded slightly higher after a weak opening. The FTSE 100 rose 5.7 points to 6,316.6 and the FTSE 250 jumped 50.5 points to a new all-time high of 11,393.3.

Disappointing results from Nissan Motor combined with yen strength to hit export stocks, sending the Nikkei index down 1.1 per cent. The broader Topix fell even further, ending 1.5 per cent lower.

US stock-index futures fell after analysts advised investors to sell shares of Chevron Corp., the second-biggest US oil producer, and cut their profit forecast for Dow Jones Industrial Average member 3M Co.

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