Financial news

The Malta Stock Exchange Index reversed earlier gains during the opening session of the week, closing down 0.08 per cent to 5,101.425 points.

As expected, shares of HSBC Bank Malta were the most liquid securities, with an aggregate of 25,990 shares traded across a total of 36 deals. The group reported last Friday a 12.8 per cent increase in pre-tax profit in after hours, on the back of a double-digit growth in non-interest income. The bank also surprised the market with a special dividend of 5c3 gross, in addition to a final gross dividend of a further 5c3.

Initial market reaction was positive, with the share price opening yesterday's session 1c5 higher, at Lm2.15. Further buying activity extended the advance even further to Lm2.16 before succumbing to profit taking in the second half of the session. The share price ended the day's session at Lm2.145, up by a mere 1c.

Shares of the other major bank - Bank of Valletta - traded weaker throughout the entire session, closing in the end at the day's lowest range of Lm3.68. Trading in the equity consisted of 4,675 shares which were executed across eight deals.

Also in negative territory ended shares of Maltacom on relatively low volumes. The equity dipped by 1.3 per cent or 2c to close the day at Lm1.46. The day's activity consisted of an aggregate 1,680 shares which were traded across four deals.

Meanwhile trading in Middlesea Insurance, FIMBank and Datatrak Holdings failed to alter their previous closing levels of Lm1.98, US$1.74 and Lm0.245, respectively.

FTSE back at six-year high

European shares moved higher yesterday, with DaimlerChrysler leading the carmakers after reports it was in talks with General Motors and other potential suitors over the sale of its US Chrysler division. By midday, the FTSE Eurofirst 300 was up 0.4 per cent, while Frankfurt's Xetra Dax added 0.5 per cent and the CAC 40 in Paris gained 0.6 per cent.

In London the FTSE returned to a six-year high amid reports of fresh bid interest in J Sainsbury and hopes for a $4 billion capital return from Anglo American. The FTSE 100 was up 29 points at 6,448.4, its highest level since November 2000, while the mid-cap FTSE 250 was 59.4 points higher at 11,615.1.

Tokyo stocks opened the week with another small step upwards, driven by weekend merger and acquisition speculation in the Japanese media and by strong numbers for economic data released last week. With several strategists declaring 2007 "the year of M&As", the Nikkei 225 Stock Average continued its ascent towards the 18,000-point mark - a high it has not reached since early 2000. The benchmark index climbed 0.4 per cent to end Monday at 17,940.09. The broader Topix Index rose 0.3 per cent to 1,779.96, after coming close to a 15-year high.

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