Financial news

The Malta Stock Exchange Index gained nearly one per cent to close above the 4,900 mark, as the two largest equities on the benchmark - HSBC Bank Malta and Bank of Valletta pushed the index higher to 4901.628 points.

Trading activity in the market was characterised by low volume levels and trades in both the equity and fixed income segments of the market.

HSBC shares climbed 4c, as the largest equity on the index regained nearly most of the ground lost on Wednesday. The equity opened 2c higher, and gained another 2c during its intra-day trading, as 6,130 shares were exchanged across five deals to see the day off at Lm1.94.

BOV shares registered the highest number of trades on the day, as 12,367 shares were exchanged across 13 deals. The bank's shares closed at its intra-day high of Lm3.70. At the end of the session 1,800 shares were outstanding on the offer side at Lm 3.67, against a demand for 1,000 shares at Lm3.655.

FIMBank was the only share that closed in negative territory, as the dollar denominated equity closed 1c lower at US$1.94. The trade finance specialist saw 3,000 shares swapped across two deals. After Monday's surge in the share price, Medserv shares were once again the star performer on the day, as the oil and gas supporting company marched on its positive path, by gaining a further 2.56 per cent or 4c to close at Lm1.60.

Trades in the local airport operator, had no monetary impact on the previous closing price of Lm1.37 for Malta International Airport.

Ryanair's announcement of a new route from Malta to Barcelona (Girona) did not result in any gains for MIA as the low-cost carrier will start operating the Iberian route on the October 30.

European stocks positive

Yesterday, European equities were higher thanks to some strong corporate earnings and rising oil prices lifting the energy sector. Merger speculation was behind much of the morning's gains.

By late morning, the FTSE Eurofirst 300 was up 0.2 per cent, Frankfurt's Xetra Dax added 0.5 per cent and the CAC 40 in Paris climbed 0.3 per cent.

London equities held on to gains by midday after US and Asian markets rallied overnight and amid speculation of more takeover activity. The FTSE 100 and FTSE 250 rose 0.2 per cent respectively. British Airways put on 2.4 per cent to trade at 501p ahead of reporting its annual results today. Goldman Sachs said it sees the airline as "the jewel in the crown" in terms of attractiveness to potential private equity and M&A predators".

Tokyo shares closed marginally lower after economic growth figures came in slightly weaker-than-expected. The Nikkei 225 average shed 0.2 per cent while the broader Topix index was off 0.3 per cent.

US stock-index futures declined before reports that may signal further slowing of the economy.

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.