Financial news
Foreign interest in FIMBank
Shares of FIMBank gained 1.41 per cent, as the company announced that the board has accepted terms of an offer received from a foreign bank, to acquire a substantial shareholding in the company. Unfortunately for the index this was not enough to end the session in positive territory as all gains were wiped out by a drop in HSBC Bank Malta shares.
Burgan Bank, Kuwait is to acquire a substantial shareholding of not less than 33 per cent in FIMBank shares at $1.70 per share, by means of an issue of new shares for cash. The shares closed at this year's high of $1.875, with a wide bid-offer spread present at the end of the session.
HSBC shares were once again the main contributors for the index's closing in the red. Heavy selling was persistent throughout the day, with over 61,000 shares changing hands over 48 trades.
A single trade in Grand Harbour Marina shares, signalled the first trade of the equity on the regular market as the share gained 3.57 per cent, and was the day's top gainer with a closing price of Lm0.725.
Trading in Bank of Valletta shares was well supported, with higher interest than usual, as 21 deals were executed with no impact on its previous closing price.
International Hotel Investments and Maltacom shares were the other two equities that ended the session in negative territory.
Intraday activity in Plaza Centres shares saw the equity trade at this year's high of 72c. However, the equity subsequently retraced back to close the session unaltered.
The Malta Stock Exchange index terminated the session 0.76 per cent weaker at 4,851.563 points.
Global equities continue to slide
European equity markets slumped yesterday as Asian markets were battered by the strengthening yen, which rose to three-month highs against the euro and the dollar as investors dumped risky assets and strategies. The slide followed a sell-off in Asian equities, which was driven by the unwinding of the yen carry trade. By midday, the FTSE Eurofirst 300 was down 1.9 per cent, Frankfurt's Xetra Dax shed two per cent, and the CAC 40 in Paris lost 1.7 per cent.
London equities tumbled, as steep losses on leading Asian exchanges overnight scotched hopes of a recovery after last week's steep falls. By midday the FTSE 100 was 1.5 per cent lower at 6,027.7, a loss of 89 points. Mid-cap investment companies pressured the FTSE 250, which lost 261 points or 2.4 per cent to 10,804.4.
Equity markets across Asia sold off sharply as growing concerns over the unwinding of the yen carry trade drove Tokyo's benchmark Nikkei 225 Average more than three per cent lower. Tokyo's Nikkei 225 fell 3.3 per cent, its biggest single-day loss in nine months, as export stocks such as carmakers were hurt by the strength of the yen.
The financial news was compiled by Valletta Fund Management (Tel. 8007 2344) and Bank of Valletta plc (Tel. 2131 2020). BOV and VFM are licensed by the MFSA to conduct investment services business.