Financial news

A relatively quiet session kicked off the ninth week of trading on the Malta Stock Exchange for this year. Although most of the shares traded ended positive or unchanged, a drop in the benchmark's largest constituent, HSBC Bank Malta, managed to drag the index lower by over 0.3 per cent, to close the session at 5060.86 points.

HSBC shareholders took some profits off the table, as the share approaches its dividend record date. Shareholders who wish to receive the dividend should hold on to their shares up till the end of Wednesday's session when they will be entitled to the proposed gross final dividend and special dividend, which together equates to a total of 10c6.

As it turned out, Bank of Valletta and Maltacom may have benefited from the selling activity in HSBC, as they both ended higher by 1c1 and 1c, respectively.

Also in positive territory ended shares of Datatrak Holdings and International Hotel Investments which gained marginally to close the session at 26c5 and €1.115, respectively.

Elsewhere in the market, deals executed in FIMBank, Medserv, Middlesea Insurance and Simonds Farsons Cisk had no impact on the shares' previous closing price. Shares in Farsons initially gained a cent as the equity traded at 85c. The beverage company's share price was eventually pushed back to its opening price as the session approached its closing bell.

Japan's Topix rises to fresh 15-year high

European equity markets were higher yesterday, driven by a combination of firm results, broker upgrades and reports of bid activity. By mid-morning, the FTSE Eurofirst 300 was up 0.5 per cent as was Frankfurt's Xetra Dax, while the CAC 40 in Paris gained 0.9 per cent.

In London the FTSE 100 moved higher, supported by oil stocks and an upbeat trading statement from Associated British Foods. By late morning, the FTSE 100 was up 43.7 points at 6,446.4 while the FTSE 250 had gained 49.5 points to 11,649.1.

Japan's Topix stock average inched up to a fresh 15-year closing high, but rises in commodity and export stocks were counterbalanced by falls in domestically focused sectors. Nikko Cordial soared 12.6 per cent after it emerged that Citigroup was in talks to take control of Japan's third largest broker. Nikko Cordial's share price has plummeted since an accountancy scandal late last year. By the end of the day the Topix was 0.1 per cent higher at 1,816.97. The Nikkei 225 also reached its highest close in almost seven years, rising 0.2 per cent to 18,215.35.

US stock-index futures rose on speculation that mergers and acquisitions will increase after TXU Corp., the largest power producer in Texas, accepted the biggest-ever leveraged buyout.

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The financial news was compiled by Valletta Fund Management (Tel. 8007 2344) and Bank of Valletta plc (Tel. 2131 2020).