Financial news

Buying activity in the largest listed company helped offset losses elsewhere in the market, thereby pushing the MSE index to close 0.17 per cent higher at 5,108 points, its first positive showing for the past four sessions.

HSBC Bank Malta was the day's most actively traded equity as, contrary to Wednesday's session, investors decided to take the plunge before the company issues its full year results after today's close. An aggregate total of 36,366 shares were exchanged during the session across 25 deals with the price gradually rising from the Lm2.12 level to Lm2.14 before retreating slightly and closing the day at Lm2.139.

Trading picked up in Bank of Valletta following news that the bank had been included in a new index set up by Dow Jones STOXX to measure the performance of the highest dividend-paying stocks of the EU Enlarged region relative to their home markets. However, a slight overhang of shares meant that the equity closed the day lower by the slimmest of margins at Lm3.699.

FIMBank and Lombard Bank Malta both traded without affecting their previous closing levels of $1.74 and Lm5 respectively.

International Hotel Investments was the day's top decliner as two investors swapped 10,000 shares at the €1.12 level. This represents a 3.5 per cent discount to the previous session, when the equity touched an all-time high of €1.17.

Elsewhere in the regular market, a mere 60 shares of GlobalCapital were purchased at the Lm2 level, leaving best demand for 500 shares at the Lm1.90 level, against supply for 1,000 shares best offered at Lm2.01.

FTSE holds around six-year highs

European equity markets were off to a slow start yesterday as losses for French banks followed results from BNP Paribas, offsetting gains for fashion and luxury goods groups and carmakers. By mid-morning, the FTSE Eurofirst 300 was down 0.1 per cent, Frankfurt's Xetra Dax added 0.1 per cent as did the CAC 40 in Paris.

London equities stayed around six-year highs, with a strong news flow lifting Diageo and Reed Elsevier, but fading bid talk around Wolseley led to losses for the stock. The FTSE 100 opened flat at 6,420.7, with the mid-cap FTSE 250 up 0.1 per cent at 11,552.6.

The Japanese government's release of economic growth numbers for the October-December quarter sparked an explosive day of trading in equities and currencies. Strong buying of the yen prompted the Japanese currency to surge against both the dollar and the euro.

Overnight US stocks climbed to new highs after Ben Bernanke said that inflationary pressures on the economy were beginning to wane. The comments by the chairman of the Federal Reserve boosted investor confidence and lifted the Dow Jones Industrial Average into record territory, climbing 0.7 per cent to 12,741.86.

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.