Financial news
Negative sentiment on higher volumes
The Malta Stock Exchange succumbed to selling pressure from HSBC Bank Malta, as the most capitalised equity in the Index eroded most of yesterday's gains, following the drop of nearly 0.6 per cent to 4817.234 points.
Trading activity in HSBC shares negated the index from closing in positive territory, as selling activity pushed the equity to close at the day's low of Lm1.87. Trading in the share saw 21 trades carrying 25,900 shares being executed.
FIMBank shares experienced a considerable pick up in trading activity, as shareholders today head into an annual general meeting that, apart from the ordinary resolutions, shareholders will be asked to vote in favour of a number of extraordinary resolutions which should pave the way for Kuwaiti-based Burgan Bank acquiring a substantial stake in the Bank. On the back of this event, the equity continued to rally as the share closed 1.3 per cent higher to USD 1.94c5.
Shares of GlobalCapital continued on their recent downbeat path, as the equity shed 4 cents or 2.05 per cent to see its day off at Lm1.91.
A muted number of trades in Malta International Airport trimmed three tenths of a cent from the equity's closing price, dragging the equity to Lm1.36,2.
A single trade of 650 shares in Simonds Farsons Cisk pushed the equity one full cent higher to 85 cents.
Elsewhere in the regular market trades in Bank of Valletta, Lombard Bank and Maltacom shares had no impact on the equities' previous closing prices of Lm3.57, Lm4.92 and Lm1.50, respectively.
European stocks fall on rate concern
Yesterday, European equity markets were lower after an overnight fall on Wall Street in response to hints from the Federal Reserve at the possible need for further US interest rate increases. By midday, the FTSE Eurofirst 300 was down 0.6 per cent, Frankfurt's Xetra Dax slipped 0.5 per cent and the CAC 40 in Paris shed 0.6 per cent.
London equities continued to fall in midday trade, as hopes for further dealmaking activity cooled, leading to losses for companies loosely linked with potential bids. The FTSE 100 fell 0.4 per cent. The FTSE 250 was held back by weakness in support services stocks and engineering companies, falling 0.8 per cent.
Japanese stocks fell on fears about the direction of the US economy and of a rise in oil prices. The Nikkei 225 finished down 0.7 per cent at 17,540.42. The broader Topix also fell 1.1 per cent to 1,719.52. Technology stocks were hit hard in particular, since the US is a big market for the sector.
US stock-index futures retreated before a government report that will probably show import prices in March rose at the fastest pace this year, reviving concern inflation is accelerating.
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.