Financial news

The Malta Stock Exchange index registered mixed trading activity as gains from Bank of Valletta were set off by losses in HSBC Bank Malta, as the index closed 0.58 per cent lower at 4864.94 points.

Bank of Valletta shares were today's top performer, as the largest bank in asset terms climbed 7c or 1.94 per cent. The equity opened the session nearly 4c higher, as investors upped their interest after the recent drop in share price. Intra-day activity saw the company close at a day high of Lm3.67. At the end of today's session, the best bid stood for 4,831 shares at Lm3.67 against a supply of 2,958 shares at Lm3.70.

Gains in Bank of Valletta were not enough to see the index off into a positive mode, as trading in HSBC shares, the largest player on the index, impacted negatively on the benchmark. The index's heavyweight lost 4c5 to close at Lm1.905. HSBC shares registered the highest liquidity level on the day as 32,500 shares were swapped across 30 deals. As the session terminated, a further demand of 260 shares stood at Lm1.905, against a supply of 3,000 shares at Lm1.90.

GlobalCapital shares saw some price fluctuations, as initial selling activity trimmed 5c from yesterday's closing price. Later in the session the company managed to regain intra-day losses and close unchanged at the Lm1.90 level.

A single trade of 450 shares in Malta International Airport, pushed the price marginally higher by 0c3, to close the day at Lm1.343.

Maltacom shares opened 2c lower at Lm1.46, subsequent activity in the telecommunication company saw the share price bouncing back to Lm1.48, thereby closing the day unchanged.

In the fixed income market, activity was split on three corporate bonds, with significant volumes in the 6.5 per cent International Hotel Investment euro denominated bond with a nominal of 270,000 being exchanged across four deals. On the government front, activity was spread on two different issues with very low volumes.

European equities negative

European equity markets were lower, with the focus on a mixed bunch of quarterly earnings. In late morning trade in London, the FTSE Eurofirst 300 was down 0.4 per cent, Frankfurt's Xetra Dax shed 0.3 per cent and the CAC 40 in Paris fell 0.2 per cent.

In London the FTSE 100 was largely unchanged as the Bank of England raised interest rates to their highest level for six years. The decision to lift rates by a quarter point to 5.5 per cent was widely anticipated. While the move could help to damp the property market, real estate stock moved higher anyway on takeover speculation. Strong earnings news from a wide range of companies failed to stop the Japanese stock market from falling. Profit-taking hit many recent gainers in the shipping and commodities sectors, as investors were anxious to book gains after the Nikkei 225 reached its highest closing high since February on Wednesday.

By the end of yesterday's trading, the Nikkei was 0.1 per cent lower at 17,736.96. But the broader Topix, which many fund managers prefer, fell more strongly, closing 0.5 per cent lower at 1,736.99.

Overnight, Wall Street rose after the Federal Reserve signalled no change in its policy stance and outlook.

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.