MSE flat again

The Malta Stock Exchange ended practically flat for the second day running, with no significant impetus from any particular equity, even though there was a pick up in trading volumes thanks to a couple of trades in FIMBank and HSBC Bank Malta. The index closed at 4872.726, a 0.003 per cent change from yesterday's close.

The main thrill of the session were the heavy volumes traded in FIMBank shares in a day otherwise characterised by low trading volumes and a muted number of deals. The two deals struck in the equity amounted to an aggregate 625,000 shares, with a monetary value of US$1,187,400. At the end of the session the share closed at US$1.90.

GlobalCapital shares saw a very modest level of activity after last Friday's announcement of a 20.8 per cent increase in pre-tax profits for the year ending December 31, 2006. Investors sold off some of their positions as the equity closed at the Lm2 level.

HSBC Bank Malta registered the highest number of trades, as 10 deals were executed, without affecting the share's previous closing price of Lm1.91.

A mere number of 600 shares were traded in Bank of Valletta, trimming one-tenth of a cent from its previous closing price.

Elsewhere in the regular market, trades in Maltacom shares left the group's previous closing price of Lm1.39 unaltered, as eight deals were exchanged. After yesterday's decision by the Central Bank of Malta to leave the central intervention rate unchanged, activity in the fixed interest sector of the market was pretty widespread, with five different corporate issues being traded, and eight government stocks. Prices in general continued to move marginally lower.

Next leads London FTSE

Yesterday, Frankfurt was driven higher by the auto sector as there was increasing speculation over a sale of Chrysler, but profit taking in financial stocks weighed on the wider market. By midday, Frankfurt's Xetra Dax added 0.4 per cent, outperforming other European stock markets. The FTSE Eurofirst 300 was down 0.1 per cent and the CAC 40 in Paris was flat at 5,575.5.

Next led London's gainers but the FTSE gave up its early gains and slipped into the red just before mid-day, in spite of strong gains across for mining stocks and further merger speculation in the housebuilding sector. Next topped the FTSE leaderboard with a gain of 3.6 per cent following a report in the Financial Times of rumours that a leading investment bank has joined forces with a private equity group to work on a leveraged buyout of the retailer.

A fall in chip-equipment makers and high-dividend shares knocked the Japanese market down from Monday's one-month closing high. The Nikkei 225 closed 0.9 per cent lower. The Topix fell one per cent.

US stock-index futures fell after Lennar Corp., the nation's largest homebuilder, said it won't meet its profit goal for 2007.

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.