Financial news

A relatively positive set of results from Malta International Airport were not enough to push the index higher during the final session of the week, as the benchmark shed 0.295 of a per cent. The newly-issued Grand Harbour Marina managed only to trade on the Off-Exchange market in its first day of trading.

MIA announced its nine months results for the period ending December 31, 2006, so as to align its financial results with its mother company. The shares closed 1c higher to Lm1.39 as 3,100 shares were traded across five deals.

Gains in MIA were counteracted by the negative performance in banking companies. Selling activity had the upper hand on Bank of Valletta soon after the session kicked off. The equity closed at Lm3.67 or 0.22 per cent lower than its previous close.

Trading in HSBC Bank Malta was conducted in the exact opposite manner of its main peer, BOV. The equity initially traded higher at the Lm1.95 level, only to sell off towards the end of the session as the share was pushed lower by 1c5 to close the session at Lm1.92.

Elsewhere in the banking sector, shares of FIMBank lost some ground on a single trade which was at a 0.96 per cent discount to its previous level, thereby closing the week at $1.849. A low volume of 600 shares traded in GlobalCapital, had no impact on its previous closing price.

Together with MIA, Maltacom was the only other equity to end the session in positive terrain. Buyers cleared all supply at the Lm1.45 and Lm1.46 levels, leaving the next best supply at Lm1.465 with merely 1,491 shares on offer. The share managed to close the day at Lm1.46.

Instability in European stocks

European equity markets gave up opening gains and turned lower yesterday, heading for weekly losses of nearly five per cent as turbulent trading resumed. By mid-morning, the FTSE Eurofirst 300 was down 0.4 per cent, taking its losses over the last five sessions to 4.8 per cent, its worst weekly decline since March 2003. Frankfurt's Xetra Dax was 0.5 per cent lower and the CAC 40 in Paris fell 0.6 per cent.

London equities slipped in midday trade as US futures suggested a lower open in New York and investors continued to trade cautiously following a three-day global slide. The FTSE 100 fell 0.2 per cent by midday.

Most of Asia's stock markets staged cautious recovery with the exception of Tokyo, where a continued fall in the Nikkei 225 Average erased the last remnants of the index's 2007 gains.

In Japan, stocks were hit by continued global fears, and by the recent strengthening of the yen - although the Japanese currency was showing signs of stabilising against the dollar in morning trading. By the day's close the Nikkei 225 was down 1.4 per cent and the Topix declined 1.1 per cent.

BOV and VFM are licensed by the MFSA to conduct investment services business.

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