Upbeat session for large caps

The Malta Stock Exchange benefited from an upbeat session for its two major components, HSBC Bank Malta and Bank of Valletta, on a relatively low level of activity.

HSBC claimed the top spot as the day's best performer, following a 5c gain which equates to a 2.7 per cent increase over its previous close. Trading immediately opened with a significant impetus as the equity traded instantly one-tenth of a cent shy of its day high of Lm1.90, which was the level at which the equity ended the session. The company will be hosting its annual general meeting of shareholders today.

Activity in BoV registered the highest number of shares traded together with the highest number of deals, as 12,060 shares were exchanged across 16 deals. After a slow start to the session where the equity traded at Wednesday's close, investors upped their interest as the equity gained 3c1 to see its day off at Lm3.62, regaining and moreover breaching the important psychological level of Lm3.60.

Maltacom also managed to regain the Lm1.50 level although it did not have to gain much ground to do so, as the equity inched higher by two-tenths of a cent. At the end of the session a further 2,750 shares stood at Lm1.47 against supply of 11,002 shares at Lm1.50.

Global Capital shares were yesterday's worst performing equity, as the diversified financial shed a full 6c, thereby closing at this year's low of Lm1.85. There remained 2,000 shares outstanding on the offer side at the closing price against a demand of 300 shares at Lm1.70.

Elsewhere in the regular market, a couple of deals executed in the two foreign currency denominated equities, FIMBank and International Hotel Investments, had no monetary impact on the shares' previous closing prices of USD$1.95 and €1.12, respectively. The latter is due to report results for the full year ended December 31, 2006 today.

Equities drop sharply

European stocks fell sharply yesterday, with global interest rates the main focus of concern after strong Chinese growth raised fears of slowing demand if the country moves to cool its economy. By midday, the FTSE Eurofirst 300 was down 0.9 per cent to 1,551.28, Frankfurt's Xetra Dax shed 1.2 per cent to 7,197.42, the CAC 40 in Paris lost 0.9 per cent to 5,786.1 and London's FTSE 100 slid 0.6 per cent to 6,410.6.

Japan's stock market dropped sharply, hit by a strengthening in the yen and a slide in Chinese shares. The Nikkei 225 ended down 1.7 per cent at 17,371.97. The broader Topix fell 1.4 per cent to 1,706.93. By late afternoon, the yen was trading at Y117.8 to the dollar, sending the export-focused electrical machinery sector down two per cent. Matsushita Electric Industrial, which under the Panasonic brand is the world's biggest consumer electronics maker, declined 2.3 per cent to Y2,380.

Overnight, Wall Street pressed into record territory as strong profits from JPMorgan lifted financial groups and offset weakness in the technology sector. Declines in US stock-index futures yesterday mirrored losses in Asian and European markets on concern China may raise interest rates to rein in the economy.

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.