Financial news

Local equities experienced a volatile final session of the week, as a late turnaround in HSBC Bank Malta took its toll on the benchmark to see the index close 0.47 per cent lower at 4,926 points.

HSBC Bank Malta enjoyed a very strong start to the session, as the equity quickly climbed to the Lm2 level for the first time in exactly two months. However, buying activity wasn't sustained and the equity registered a significant turnaround during its midday trading, which not only eroded all initial gains but trimmed a further cent to close at Lm1.96. An aggregate total of 41,315 shares were dealt across 28 trades.

Bank of Valletta closed the session unchanged as investors held back from taking a particular position before the issue of the bank's interim results for the six months ending March 31, 2006, which were due after Friday's close. The uncertainty in the equity was also signalled at the end of the session, where best demand was for a mere 275 shares at Lm3.60, against supply of 413 shares at Lm3.63.

Muted selling activity in International Hotel Investments saw the equity lose further ground to close the week at €1.10. The hotel operator lost three percentage points as 5,650 shares were struck across two deal.

Maltacom succumb to sustained selling activity after initially trading unchanged. The day's activity consisted in 9,800 shares which were swapped across six transactions, forcing the price to decline 2c2 or 1.67 per cent to terminate the session at Lm1.47. The equity commenced trading ex-dividend during Thursday's session.

Malta International Airport was the day's only positive mover. Investors reacted positively to newspaper reports of a new link between Malta and Bremen which will be operated by low-cost carrier Ryanair. The equity recouped all of Wednesday's losses to move up 1.64 per cent and close at the Lm1.49 level.

European stocks drop

European equities were lower yesterday, dragged down by falling oil stocks. However bid activity and strong earnings helped keep a lid on the losses. Oil stocks contributed to the decline after crude prices eased overnight. By late morning in London, the FTSE Eurofirst 300 was down 0.4 per cent, Frankfurt's Xetra Dax slipped 0.1 per cent and the CAC 40 in Paris shed 0.1 per cent too.

London equities fell in midday trade as the Royal Bank of Scotland confirmed it would make a counter-bid for Dutch bank ABN Amro. However, Marks and Spencer rose a further 1.5 per cent to an all-time high of 751p.

The FTSE 100 lost 0.5 per cent, with much of the decline accounted for by the mining sector. The FTSE 250 fell by 0.2 per cent, with weakness in mid-cap telecom and engineering stocks.

Japanese shares drifted lower, as weak economic data tarnished sentiment and investors sold down ahead of the Golden week holiday. The Nikkei 225 closed the session down 0.17 per cent. The broader Topix index dropped 0.14 per cent.

US stock-index futures retreated on speculation a government report will show the economy grew in the first quarter at the slowest pace in more than a year.

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.