Demand pushes Maltacom higher

Gains registered by HSBC Bank Malta and Maltacom carried on into yesterday's trading session on the Malta Stock Exchange, thereby helping the MSE index notch higher by 0.6 per cent to 4,843 points.

Maltacom shares gained more ground, following an analysts' meeting held yesterday, where the company presented its full-year results and announced that it is to launch another Voluntary Retirement Scheme. The equity rose by 2.11 per cent to see the day off at Lm1.45. At the end of the session a further 1,472 shares remained outstanding at the offer price of Lm1.45, while the best bid stood for 2,714 shares at the Lm1.40 level. The equity is still trading with the right to receive a final net dividend of 5c per share.

Strong initial buying activity in HSBC Bank Malta propelled the shares to the Lm1.90 level, however subsequent activity was more muted with fresh supply softening sentiment slightly. Nevertheless, the equity closed the day at Lm1.899, which represents a 0.96 per cent gain from its previous close.

Simond Farsons Cisk was also among the winning stocks yesterday, as the major local brewer climbed 2c or 2.44 per cent. Almost 4,000 shares changed hands across three deals with the price finishing off the session at 84c, its highest level since the end of February.

On the other hand, the only negative note during the session was a marginal decline in GlobalCapital shares, which shed half a cent to close the session at Lm1.95.

Elsewhere in the regular market varying volumes traded in Bank of Valletta, FIMBank and Malta International Airport shares, but had no monetary impact on the their previous closing prices or Lm3.597, $1.92 and Lm1.36 respectively.

European equities close to reaching six-year highs

European equity markets crept towards their highest levels since the spell of market turbulence that began on February 27 when Chinese stocks plunged eight per cent overnight. By midday, the FTSE Eurofirst 300 edged fractionally higher to 1,536.74, Frankfurt's Xetra Dax added 0.2 per cent to 7,062.64 and the CAC 40 in Paris was up 0.2 per cent at 5,721.67.

A fresh bout of takeover speculation broke out amid rumours of possible bids for Home Retail Group and SSL. In the wider market, the FTSE 100 had a mixed start to trading and was down 6.8 points at 6,359.3 by late morning. The FTSE 250 was up 8.1 points at 11,893.1 - a new high.

South Korean, Singaporean and Australian stock indices all hit record highs, while renewed confidence about the US housing market and a fall in oil prices boosted confidence in the global economy. The Japanese stock market, Asia's biggest, also rose strongly. The Nikkei 225 index advanced 1.7 per cent to 17,544.09. The broader Topix gained 1.5 per cent to reach 1,730.52.

US stock-index futures were little changed before reports that may show the economy is expanding at the moderate pace forecast by the Federal Reserve.

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.