Financial news

An overall positive session for index heavyweights, HSBC Bank Malta and Bank of Valletta, was not enough for the Malta Stock Exchange index to close in positive territory, as losses in Malta International Airport and Maltacom dampened the overall effect on the benchmark.

As the trading session opened, buyers of HSBC shares had the upper hand, with the equity touching a day's low of Lm2.125. However, in the dying minutes of the session, the equity recouped all the day's loss and added a further 0c5 to close at Lm2.15.

Also in positive territory ended shares of Bank of Valletta, as the equity gained 1c, to close at Lm3.69. Simonds Farsons Cisk, Datarak Holdings and GlobalCapital all rose by one cent, as a limited number of trades were executed in these small caps.

Selling activity in MIA and Maltacom eroded the gains realised by the other shares on the market. Three trades dealt in MIA drove the price 4c8 or 3.43 per cent lower, to Lm1.35 on an aggregate volume of 2,100 shares.

The activity registered in Maltacom was backed by higher volumes, as 20,200 shares dampened down the price by 3.74 per cent. The share ended the day's session at Lm1.42, the lowest level since September 2005.

In the other trades for the day, 1,000 shares of FIMBank were purchased without affecting their previous closing level of Lm1.74.

Europe stocks drop from six-year highs

European equities were lower yesterday after real estate companies eased on reports of slowing growth in property investment markets, while oil companies fell after crude prices dipped overnight. By midday, the FTSE Eurofirst 300 was down 0.4 per cent, Frankfurt's Xetra Dax shed 0.3 per cent, the CAC 40 in Paris lost 0.3 per cent.

London equities were broadly flat on a busy day for corporate news. With five FTSE 100 companies reporting, the blue-chip index was flat at 6,443.3 while the mid-cap FTSE 250 rose 10 points to 11,656.1 on news on bid interest in EMI Group.

Japan's Topix index hit a 15-year high before retreating to close at its highest level in 10 months as nervous investors looked ahead to the Bank of Japan's announcement today on interest rates. With economists unsure which way the central bank will jump, investors opted for what one Nomura broker described as "safety in hiatus". The Topix Index rose 0.2 per cent to hit 1,782.73. The Nikkei 225 index ended the day virtually unchanged at 17,939.12.

Wall Street entered 2007 thinking the defensive qualities of large capitalised stocks would emerge as the driving force behind further stock market gains. Instead, the pace so far this year has been set by small and medium-sized companies, with basic materials, cyclical and transport sectors figuring prominently.

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