Financial news

The Malta Stock Exchange index shed nearly one per cent, as trading was limited to four different companies, none of which traded in positive territory.

Bank of Valletta shares stole most of the negative limelight for the day as the commercial bank lost 10c, or 2.7 per cent. Trading in the equity opened near yesterday's best bid at Lm3.65 but subsequent activity in the share touched an intra-day low of Lm3.581. As the session approached the end, the equity regained the Lm3.60 level to close the session at the same level. At the end of today's session, the best bid stood for 8,500 shares at Lm3.602 against a supply of 3,450 shares at Lm3.639. The Bank's shares were the most liquid shares on the day with 13,290 equities exchanging hands over 10 deals.

All the activity struck in HSBC Bank Malta was undertaken at an unchanged price of Lm1.95. The index's heavyweight saw nearly 6,000 shares traded across four deals. As the session terminated, best bid stood for 960 shares at Lm1.94, against a supply of 3,100 shares at Lm1.96.

A single deal executed in Grand Harbour Marina shares trimmed half a cent from the equity's previous closing price, to see the day off at 75c.

Malta International Airport was the worst performer on yesterday's session as the airport operator shed 5c5 or 3.94 per cent, equating to an erosion of Lm2.2 million of market capitalisation. The downturn in the equity was supported by a relatively muted number of transactions as only three deals carrying 2,150 shares were exchanged.

Activity in the fixed income market was relatively widespread especially in the government stock issues, although volumes were not up compared to the previous two sessions. In the corporate bond sector, three different issues were traded, while in the government stock sector 14 different issues were traded.

European equities higher

European equities were higher, driven by talk of consolidation in London's mining sector and resurgent banking stocks after the previous session's profit taking. London-listed miners topped the Eurofirst leaderboard amid rumours BHP Billiton was poised to make a takeover offer for Rio Tinto. Rio shares added 5.8 per cent and BHP gained three per cent, while expectations of consolidation within the sector drove Kazakhmys 3.1 per cent higher and Xstrata climbed 2.4 per cent.

By late morning in London, the FTSE Eurofirst 300 was up 0.2 per cent, Frankfurt's Xetra Dax added 0.4 per cent, the CAC 40 climbed 0.3 per cent and London's FTSE 100 gained 0.3 per cent.

In Japan, the Nikkei 225 index rose to its highest close since February, boosted by sharp share price increases in response to positive earnings and other corporate news. At the close of play, the Nikkei was 0.5 per cent higher at 17,748.12. The broader Topix finished up 0.7 per cent at 1,745.01.

US stock-index futures were little changed before the Federal Reserve meeting on interest rates. Investors will be looking for indications that Chairman Ben S. Bernanke will cut interest rates any time soon.

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.