Financial news

Trading at the Malta Stock Exchange was limited to an hour due to a technical fault in the MSE trading system. The contributors for Thursday's positive closing in the Malta Stock Exchange Index, were also yesterday's main drivers for the benchmark to close in negative territory. The index closed at 4855.581 points as the benchmark suffered from a downbeat session from its largest players on the equity market, HSBC Bank Malta and Bank of Valletta.

Selling activity in HSBC shares wiped out all of Thursday's gains, after initially trading at the Lm1.94 level. The equity registered the exchange of 31,381 shares across 24 deals, to close at a low for the day of Lm1.90.

BOV shares dropped three cents, topping by one cent yesterday's two cent gain. Seven deals carrying 5,690 shares were executed pushing the price lower by 0.27 per cent to Lm3.64. At the end of the session a further 3,000 shares remained on the offer side at Lm3.65, against a demand for 270 shares for Lm3.63

Heavy volumes were witnessed in International Hotel Investments shares, as the euro denominated equity saw 119,138 shares exchanging hands across five deals. The hotel property company opened trading at the €1.07 level, before sentiment turned positive and the equity ended the session at the day's higher range of €1.09c1.

The other foreign denominated equity on the official list, FIMBank saw a single deal of 28,584 shares being struck, without altering the previous closing price of US$1.94.

Maltacom share price was also unmoved on the day, after hitting an intraday high of Lm1.49, on the execution of six trades carrying 12,000 shares. The equity closed the session at Lm1.48.

Malta International Airport was the only other share apart from IHI that closed the session on a positive note, as the local airport operator gained one cent or 0.73 per cent. Investors upped their interest in the equity as they priced in some of the benefits the local airport operator should reap after Ryanair's announcement that it will start operating from Barcelona from next October.

European equities reach six-and-a-half-year highs

Yesterday, European equities rose to six-and-a-half-year highs as merger rumours drove gains in the oil sector, while aerospace group EADS was lifted by talk of the sale of a stake. Oil stocks were buoyed, both by crude prices rising back towards $70 a barrel, and by merger talk after Royal Dutch Shell and BP were linked to possible tie up. By late morning, the FTSE Eurofirst was up 0.7 per cent to 1,595.41, Frankfurt's Xetra Dax added 0.8 per cent to 7,560.14 and the CAC 40 in Paris added 0.8 per cent to 6,074.75.

London equities hit a new six-year high as oil stocks rallied and Cadbury Schweppes gained on bid reports.

The FTSE 100 was up 40.2 points to trade at 6,619.5, its highest level since 2000, while the mid-cap index was up 23.3 points to 12,166.2.

The Japanese market drifted further downwards in the afternoon following the peak of the earnings season, with small cap stocks hit particularly hard. The Nikkei 225 fell 0.6 per cent to 17,399.58. The broader Topix fell 0.7 per cent to 1,695.69.

Overnight Wall Street stocks weakened as investors consolidated the market's recent run of gains.

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.