Financial news

The local equity market ended steady yesterday with index heavyweights HSBC Bank Malta and Malta International Airport extending declines, while Middlesea Insurance bouncing from recent low levels. The Malta Stock Exchange index edged down 0.023 per cent to close at 4,858.51 points.

The day's activity in local equities remained relatively on the low side with total volumes reaching a mere 30,701 shares across 22 trades. Among the equities trading during the session, shares of Middlesea Insurance rose by 4c7 or 2.4 per cent on two trades for a total of 430 shares.

Also in positive territory ended shares of Maltacom which recovered most of the previous day's losses. The equity was up 1c on the day, closing at Lm1.46 on six deals for an aggregate 18,475 shares.

Volumes in International Hotel Investments were back to normal levels after significant institutional activity over the past two days. The equity gained a further €0.005 to reach €1.13.

HSBC shares were down a further 0c9, after losing 0c5 during Tuesday's session. A total of seven deals were executed in the equity for an aggregate 6,890 shares. At the end of the session, the price settled at the lower end of the day's trade range of Lm1.905.

Also in the red terminated shares of Malta International Airport which also extended the previous day's negative sentiment. The equity was down by 0c6 to Lm1.35 on four deals for 1,600 shares.

European markets rise

London equities gained yesterday, despite sharp losses in Tate & Lyle. The banking and telecoms sectors lent support, particularly Vodafone Group. Drax Group led the blue-chip gainers, up 3.9 per cent, after Deutsche Bank repeated its "buy" rating and lifted its price target from 850p to 950p.

Meanwhile, Vodafone jumped 3.5 per cent to 149.6p in heavy volumes amid fresh M&A speculation. The FTSE 100 was up 0.4 per cent, to 6,630.5 while the mid-cap FTSE 250 was 0.4 per cent, higher at 12,230.4.

European equity markets moved to fresh six-and-a-half-year highs in morning trade, helped by strength in the mobile telecoms, car and software sectors. The FTSE Eurofirst 300 rose 0.5 per cent, to 1,605.5 while Germany's Xetra Dax gained 0.4 per cent, at 7,694.01 and the French CAC 40 added 0.3 per cent, at 6,105.8.

Strong gains of Japan's megabanks pushed up the Topix index, in which the banking sector is heavily weighted. By the close of trading the Topix was up 0.5 per cent at 1,740.08. But the Nikkei 225 gained only 0.1 per cent to close at 17,705.12.

Overnight Wall Street closed mixed, with technology the bright spot, as blue chips and the S&P500 index failed to sustain record breaking momentum.

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.