Equities lower on selling

Equity prices closed the final session of the week on a negative footing, as a fresh bout of selling activity hit a relatively thin bid side, knocking off a few cents across most of the day's closing prices. Overall, the MSE index shed 0.7 per cent to close yesterday's session at 4,845 points.

Bank of Valletta suffered the brunt of this selling activity as 6,787 shares were offloaded across 11 transactions, forcing the price to rapidly decline to the Lm3.60 level, which represents a 6c9 or a 1.9 per cent discount to Thursday's closing price. HSBC Bank Malta dropped 1c or 0.5 per cent to Lm1.91 on an aggregate total of 14,035 shares which were swapped across 19 transactions.

Activity in Lombard Bank Malta consisted of 500 shares which were exchanged among two investors without altering its previous closing price of Lm5. This week, the bank reported a 5.5 per cent increase in profit before tax on ordinary activity which came in at Lm3.87 million. Furthermore, the gross final dividend was increased by 25 per cent to 12c5 per share.

FIMBank was the day's most liquid equity with 45,700 shares changing hands across five transactions. All deals were struck at the $1.875 level which still represents a 10.3 per cent premium to the proposed acquisition, by Burgan Bank of Kuwait, of a substantial shareholding in the company.

Maltacom was the day's only gainer as merely 500 shares were swapped across a single trade at the Lm1.41 level, which represents a 1c gain to its previous closing level.

Elsewhere in the market, International Hotel Investments declined to the €1.165 level, while Malta International Airport shed 2c or 1.4 per cent to Lm1.38 on 1,500 shares which were exchanged across two transactions.

Europe stocks decline

Yesterday European equities were lower as drugs, metals and mining groups slipped, and although the losses were less severe than those seen last week, strategists were cautious of calling an end to the recent market volatility. By midday, the FTSE Eurofirst 300 was down 0.5 per cent as was Frankfurt's Xetra Dax. The CAC 40 in Paris shed 0.7 per cent and London's FTSE 100 lost 0.4 per cent.

The Japanese stock market continued cautious recovery from the recent market turmoil, rising moderately. Real estate, which had been a favourite among foreign buyers until it was hit hard during the recent market turmoil, has resumed its relentless rise, supported by overseas confidence in Japan's underlying property market.

The sector rose 2.2 per cent. The Nikkei inched up 0.4 per cent, boosted by strong rises in securities companies and the real estate sector, and by strong figures for machinery orders. The broader Topix rose 0.5 per cent.

Overnight the tentative recovery in US stocks gathered pace as Wall Street cheered rising overseas markets and signs of improved corporate profits. The rally was given extra vigour by speculation that Citigroup might be attempting a further acquisition in Asia, while the weaker yen eased concerns about the global carry trade.

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.