Financial news

The Malta Stock Exchange index registered another session of marginal declines shedding 0.12 per cent to close the week at 4847.235 points.

Bank of Valletta was the main catalyst for yesterday's decline in the index, as the largest bank in asset terms dropped two cents. Activity in the equity consisted of 3,148 shares which were spread across nine deals forcing the price to close at the Lm3.62 level.

The star performer on the last day of the week was Simonds Farsons Cisk, which notched higher by an impressive 5.9 per cent, after a bullish outlook given by the Group's chief executive officer at an analyst meeting held on Thursday. The equity closed at a year high of 90c as 12,836 shares, the highest volume for a single session, were exchanged across seven deals.

Malta International Airport managed to close the week on a positive note, as the airport operator gained three cents or 2.2 per cent to close at Lm1.38.

HSBC Bank Malta and Maltacom both declined by the same monetary amount of half a cent. The two equities had the highest number of shares traded on the day, as 30,623 and 17,380 shares were exchanged respectively. HSBC closed the day at Lm1.90, while the telecommunication company shares stood at Lm1.45 as the session terminated.

A solo trade in the dollar denominated equity, FIMBank, pushed the closing price lower by one tenth of a cent to $1.949.

Medserv continuing to steer a significant level of interest, as 10,400 shares were swapped on four different deals. Demand and supply chain dynamics left the equity's price unaltered as all trades were executed at the Lm1.60 level.

Europe lower on banking sector performance

Banks led European equities lower yesterday but bid activity helped keep the market afloat after Nasdaq made an offer for Stockholm bourse operator OMX. By late morning in London, the FTSE Eurofirst 300 was down 0.3 per cent, Frankfurt's Xetra Dax fell fractionally to 7,694.63 and the CAC 40 in Paris shed 0.2 per cent.

Pub and restaurant groups were the focus of attention in London ahead of the bank holiday weekend after a profit warning from Regent Inns. In overall, mid-session trade, the FTSE 100 lost 0.2 per cent as oil, mining and banking stocks all fell amid growing concern about inflationary pressures in China and the US. The FTSE 250 was 0.1 per cent lower with mid-cap investment companies lower in line with weaker equities markets.

Japan's stock market dropped, responding to the worst performance of US shares in two weeks the previous night. The Nikkei 225 fell 1.2 per cent. The broader Topix declined 1.3 per cent.

Overnight Wall Street slid as investors took a harder look at the recent rally in stocks and rise in bond yields. Stocks have rallied sharply this year boosted by hefty deal activity, share buybacks and hopes of a rate cut by the Federal Reserve.

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.