A continuation of yesterday's positive sentiment in FIMBank shares, after announcing strong results for the year ending December 31, 2006, were once again not enough to compensate for the downbeat in the Malta Stock Exchange's heavyweights, HSBC Bank Malta and Bank of Valletta. The two major banks dragged the benchmark 0.15 per cent lower to close the session at 5078.026 points.
FIMBank shares reached the day's permissible upper trade range as investors upped their demand for the equity. Friday was the last day in which investors purchasing the equity would qualify for a scrip dividend of US cents 3.5244 per ordinary share, proposed by the board of directors.
Some cautious trading characterised the activity in the two major banks. HSBC Bank Malta shares were as usual the day's most heavily traded equity with 23 trades executed, as the share price fell by a mere 0.4 of a cent to close the session at the Lm2.125 level. Bank of Valletta shares shed a whole cent or 0.27 per cent as nine trades carrying a monetary value of Lm16,268 were exchanged.
Together with FIMBank, Maltacom was the second most traded security on the index with 18 trades executed, but unlike its counterpart, the telecom company saw its shares tumble by 2c9 or two per cent to Lm1.42.
Elsewhere in the equity market, two deals in Medserv shares had no impact on the equity's previous closing price of Lm1.42. A single trade struck in GlobalCapital shares pushed the price higher to Lm2.02.
European markets flat
European equity markets turned flat by mid-morning yesterday, as support from resource stocks was undermined by profit taking in the financial sectors. The technology sector was led higher by Alcatel-Lucent, the Paris-listed telecommunications equipment group, after a US court ruled in its favour against software giant Microsoft over an MP3 patent infringement. 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 fell in morning trade, with weakening banks counteracting strength in resource stocks after a lacklustre reaction to full-year numbers from Lloyds TSB. The FTSE 100 lost opening gains to fall 0.3 per cent. Mid-cap leisure stocks lost ground as the FTSE 250 also fell 0.1 per cent.
Japanese large and mid-cap stocks rose moderately, continuing to respond in rather restrained style to the Bank of Japan's Wednesday decision to raise interest rates. The Nikkei 225 was up 0.4 per cent. The broader Topix rose 0.7 per cent.
Overnight Wall Street stocks retreated from early gains as concerns over Iran's nuclear ambitions damped a rally in technology groups. The S&P 500 index was down 0.1 per cent lower. The Dow Jones Industrial Average was 0.4 per cent softer.
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The financial news was compiled by Valletta Fund Management (tel. 8007 2344) and Bank of Valletta plc (Tel 2131 2020).