Financial news
Rebound in large caps
Gains in the two main constituents of the Malta Stock Exchange index pushed the benchmark higher by 0.797 per cent to 4903.702 points, as HSBC Bank Malta recovered Thursday's losses and Bank of Valletta shares climbed 1c.
HSBC shares managed to recoup the previous session's losses as the most capitalised equity in the index gained 4c5. The bank registered the highest number of trades together with the largest volumes, as the most liquid equity on the day closed at Lm1.95. As the session terminated, a further demand for 260 shares stood at Lm1.905, against a supply of 3,000 shares at Lm1.90.
Bank of Valletta shares bucked on yesterday's positive trading, as the largest bank in asset terms gained a further 1c. The equity touched an intra-day high of Lm3.69, before settling at the Lm3.68 level as the closing bell approached.
A single deal struck in the euro denominated equity International Hotel Investment saw the equity shed €0.01 to see the day off at €1.08. Another solo trade in Malta International Airport of 1,000 shares pushed the price higher by 0c7 to close at Lm1.35.
Lombard Bank was the day's worst performer, as initial selling activity in the equity saw a drop of over 20c, and subsequently traded at an intra-day low of Lm4.649. Investors held this drop as a good entry level to push the equity above the day's low and end the session at Lm4.80.
The exchange of 3,000 shares in Maltacom shares saw the telecommunication company drop 3c to end the day off at Lm1.45.
Middlesea Insurance managed to wrap up a rare positive day, as the largest insurance company on the island was the day's top performer, after a gain of 5c to regain the Lm1.90 level.
Elsewhere in the regular market, three small deals amounting to 537 shares in Simonds Farsons Cisk had no impact on the equity's previous closing price of 85c.
European equities decline
European equity losses were led by the rate-sensitive banking sector as signals from the European Central Bank suggested the eurozone interest rate tightening cycle was not over. The banking sector accounted for nearly a quarter of the Eurofirst 300's losses, and all but three of the sector's 52 stocks were in negative territory.
By mid-morning, the FTSE Eurofirst 300 was down one per cent, Frankfurt's Xetra Dax shed 1.2 per cent and the CAC 40 in Paris lost 1.2 per cent too.
The FTSE lost ground in response to a sharp slide on Wall Street. The Dow Jones Industrial Average suffered its worst one-day performance for two months overnight, closing down 1.4 per cent. By late morning, the FTSE 100 was off 0.7 per cent while the mid-cap FTSE 250 fell 0.8 per cent.
Disappointing profit forecasts and brokerage downgrades pushed down the Japanese stock market. Overnight weakness in the US stock market also depressed export-focused Japanese stocks. The Nikkei 225 closed one per cent lower and the broader Topix slid 0.8 per cent.
US stock-index futures rose before reports on retail sales and producer prices that may give further clues on the outlook for economic growth and interest rates.
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.