HSBC weighs on index

Another positive day for Maltacom shares was not enough to see the Malta Stock Exchange end the session in positive territory, as selling activity in HSBC Bank Malta weighed on the benchmark, to close the session half a per cent lower, at 4819.129.

Thursday's trading in Maltacom shares marked the third consecutive day of gains for the equity which as the telecommunication company climbed 1.42 per cent to Lm1.47, following Monday's publication of full-year results for 2006. Intra-day activity was well supported by a significant amount of trading, both in terms of deals executed and volume traded.

Selling activity in the benchmark's largest constituent, HSBC, took its toll on the index as a fair amount of trades pushed the equity 2c7 lower, at Lm1.871. At the end of the session a further 1,515 shares remained outstanding at the offer price of Lm1.88, while the best demand stood for 16,277 shares at the Lm1.87 level.

Bank of Valletta shares rose three-tenths of a cent, to regain the Lm3.60 level, as 26,795 shares changed hands across 16 deals.

Two deals executed in International Hotel Investments pushed the equity 2c lower to €1.15, as the equity traded at the aforementioned level.

A mere trade of 50 shares trimmed 1c7 off Middlesea's share price, as the equity closed at Lm1.903.

Elsewhere in the regular market, low volumes traded in GlobalCapital and Simonds Farsons Cisk had no monetary impact on the shares' previous closing levels of Lm1.95 and 84c, respectively.

FTSE boosted by rate decision

European equity markets were led by French aerospace group Safran on reports it could merge with defence electronics group Thales on Thursday. By midday, the main indices were flat as caution prevailed ahead of the Easter holiday weekend. The FTSE Eurofirst 300 was down 0.1 per cent, Frankfurt's Xetra Dax was flat at 7,076.88 and the CAC 40 in Paris lost 0.2 per cent.

London equities were given a boost as the Bank of England chose to keep UK interest rates on hold. Some commentators had forecast that the Monetary Policy Committee would raise rates to 5.5 per cent, although a hike in May now looks likely instead. A touch lower before the mid-day rate decision, the FTSE 100 was up 10 points to 6,374.7 just after the announcement. The mid-cap FTSE 250 firmed 37 points to 11,925.1.

Japanese stocks fell mildly, succumbing to profit-taking after strong rises in the previous session. The Nikkei 225 was down 0.3 per cent to 17,491.42. The broader Topix fell 0.6 per cent to 1,720.72.

In the US stocks overcame reports that signalled moderating economic growth. US service industries grew at the slowest pace in almost four years last month, providing less of a cushion for an economy buffeted by manufacturing and housing downturns.

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.