Financial news
Significant drop in GlobalCapital shares
Trading activity in GlobalCapital shares continued on last week's negative performance, as the equity was once again the day's worst performer. Late selling activity in Malta International Airport dented the Malta Stock Exchange as the index turned negative after initially trading in positive territory.
GlobalCapital shares lost 11c or 6.4 per cent, as the equity registered a considerable amount of trading following the exchange of 60,600 shares across eight deals, trimming away over Lm1.45 million of market capitalisation. At the end of the session 550 shares stood at Lm1.87 against supply of 2,100 shares at Lm1.1.95, which is likely to put upward pressures on yesterday's closing price.
Tardy off-loading of some MIA shares turned out to be a pivotal point for the negative close in the index, as the benchmark reverted in negative territory. The airport operator lost three full cents to see the day off at Lm1.34.
The two largest capitalised equities on the index, both registered gains for the day, as HSBC Bank Malta and Bank of Valletta climbed half a cent each. All ordinary and extraordinary resolutions proposed at the annual general meeting for HSBC shareholders held last Thursday were approved. The equity closed at Lm1.925, while BOV shares gained 0c5 to close at Lm3.63.
The signing of the much-awaited agreement between the government and Tecom Investments that was scheduled for yesterday did not propel a positive effect, as the equity shed one-tenth of a cent to close at Lm1.499.
Elsewhere in the regular market, trading activity in FIMBank shares and Simonds Farsons Cisk had no impact on the equities' previous closing prices, as the dollar denominated equity registered a significant level of activity of 191,800 shares, to close at $1.95, while Farsons closed the session at 85c.
The Malta Stock Exchange closed the session at 4868.851 points.
ABN Amro to be taken over by Barclays
European equity markets were lower yesterday as weakness in the financial sector followed the announcement by Britain's Barclays of an all-share bid for Dutch bank ABN Amro. Barclays, the UK lender, said it had agreed to buy ABN in an all-share deal worth €67 billion that values the Dutch group's shares at €36.25 each, a whisker below Friday's closing price. However, Barclays also agreed to sell ABN's US division LaSalle to Bank of America for $21 billion in cash, much of which would be returned to shareholders. The deal, if successful, would create the world's fifth biggest bank.
By late morning in London, the FTSE Eurofirst 300 was down 0.2 per cent, Frankfurt's Xetra Dax shed 0.3 per cent, the CAC 40 in Paris lost 0.4 per cent and London's FTSE 100 was 0.1 per cent lower.
Japanese stocks ended flat with strong early gains in the morning session petering out ahead of forthcoming full-year earnings results.
The Nikkei stock average closed up a tiny 2.75 points at 17,455.37 after being nearly 165 points higher in the morning. The broader Topix index, 0.68 per cent higher earlier in the day, fell back to 1,705.63, losing 0.26 per cent.
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.