Financial news
Financials drag the index lower
For the second consecutive day, the local benchmark saw no equity trading in positive territory after the Malta Stock Exchange had to bear the brunt of a negative day from its major components, HSBC Bank Malta and Bank of Valletta. The Index lost over 24 points to close the session at 4810.593, 0.509 per cent lower then its previous close.
Bank of Valletta shares closed with a slight negative bias, after dipping to a day's low of Lm3.59 and breaching the important psychological support level of Lm3.60. However, the equity recovered almost all its intra-day losses as it closed only one tenth of a cent lower at Lm3.61.
Yesterday's breach of the Lm1.90 level spurred further selling activity in HSBC shares following the execution of 13 deals. At the end of the session, 870 shares were best bid at Lm1.88, while 9,696 shares were best offered at Lm1.90.
Middlesea Insurance was the worst performer on the day, as the major insurance company on the island lost five cents or 2.54 per cent, wiping out Lm1,250,000 of market capitalisation. At the end of the session the equity was down to Lm1.92.
Late trades in Maltacom shares pushed the closing price half a cent lower to Lm1.38c5. When the session terminated, a further 2,178 shares remained outstanding on the offer side at this price, against demand for 800 shares at Lm1.38c5.
Elsewhere in the regular market, trades in FIMBank, Malta International Airport and Plaza Centres did not alter the equities' previous closing prices of US$1.90, Lm 1.38 and Lm0.71c5, respectively.
Bourses positive thanks to banks and oils
Yesterday, European equity traders put aside concerns over growing geopolitical strife as banks recovered from the previous session's losses, while oil groups continued to benefit from crude prices near six-month highs. By midday, the FTSE Eurofirst 300 was up 0.7 per cent, Frankfurt's Xetra Dax added 0.8 per cent and the CAC 40 in Paris gained 0.8 per cent.
London equities extended their early gains by the end of morning trade, helped by a flow of positive earnings news and further bid speculation in the retail sector. The FTSE 100 and the FTSE 250 gained 0.6 per cent respectively.
A drop in the shares of consumer lenders was counterbalanced by a rise in utility stocks, leaving Tokyo markets little changed. The shares of heavy exporters were initially hit in the morning by the yen's strengthening against the dollar, but by late afternoon the yen had weakened to Y117.4, pushing export-focused sectors up again. The Nikkei 225 closed up 0.1 per cent at 17,263.94. The Topix was virtually unchanged at 1,710.68.
US stock-index futures rose before a report that will probably show the economy accelerated in the fourth quarter while inflation eased. Stocks yesterday declined the most in two weeks after Federal Reserve Chairman Ben S. Bernanke said inflation remains his main concern.
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.