Financial news
Lombard suffers on lack of bids
The Malta Stock Exchange index registered a marginal drop to 4852.918 points following a significant drop in Lombard Bank, which, however, commands a light weighting, and unmoved prices for the two largest equity exposures on the index, HSBC Bank Malta and Bank of Valletta.
A single trade in Lombard Bank pushed the price lower by a considerable 17c of 3.54 per cent, to a year low of Lm4.63. The pressured seller of the equity eroded Lm1.45 million worth of market capitalisation, leaving 2,500 shares best bid at Lm4 against supply of 2,658 shares at Lm4.64.
Bank of Valletta managed to recoup intra-day losses to close unchanged on the day at Lm3.64, as 1,232 shares were struck across five deals. At the end of the session, 2,382 shares remained outstanding on the offer side at the closing price of Lm3.64, against a best bid for 1,000 shares at Lm3.62.
On the other hand, the most capitalised equity on the benchmark started off its trading session 0c5 above Wednesday's close.
Subsequent intra-day activity in HSBC Bank Malta saw the price breach below the opening price to change hands at a day's low of Lm1.904. Eventually, the share closed unchanged at Lm1.905.
Maltacom was the other share that saw the day off in the red, as the telecommunication company dropped 0c5 to Lm1.455. All the trades executed on the day were exchanged at the said closing price.
FIMBank provided the only bright spot for the index, as the dollar-denominated equity climbed $0.01, to close at $1.95. The trade finance specialist registered a solo trade of 5,000 shares.
Elsewhere in the regular market, trades in GlobalCapital and Malta International Airport had no impact on the companies' previous closing prices of Lm1.80 and Lm1.35 respectively.
European stocks lower on China concern
European equities retreated from 6.5-year highs yesterday after a warning from former Federal Reserve chairman that China's red hot market faced a sharp correction. The Chinese economic boom has helped fuel gains for luxury goods groups in Europe, and fears of a potential slowdown in China's growth hit Richemont, the Swiss watchmaker. Its shares fell 2.2 per cent to SFr74.40, in spite of the company announcing a 21 per cent rise in annual net profit thanks to consumer booms in China, Russia and the Middle East.
By late morning in London, the FTSE Eurofirst 300 was down 0.4 per cent, Frankfurt's Xetra Dax fell 0.3 per cent and the CAC 40 in Paris lost 0.8 per cent.
Overnight in New York, the main equity indicators fell after Alan Greenspan, former chairman of the Federal Reserve, said he expected a "dramatic contraction" in Chinese shares. This also left Asian stock markets lower.
The Japanese stock market edged down because of profit-taking, with bulls showing signs of fatigue after three straight days of rises. The Nikkei 225 was down 0.1 per cent at 17,696.97. The broader Topix also fell 0.1 per cent to 1,738.11.
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.