Financial news

Investors' main focus was on the fixed income sector of the market, as trading in government stocks took centre stage once again. Government stock price had another downbeat session across all varying maturities, while trading in HSBC Bank Malta, yet again, turned positive late in the session. Initial trades executed in HSBC were driven by sellers who squeezed the price lower by 0c5, down to Lm1.90. This level provided support and even ignited some buying activity which saw the price recover almost 3c from the day's low, to close the session at Lm1.928, an increase of 0.94 per cent over Monday's close. The only other gainer on the benchmark was International Hotel Investments, where the euro-denominated equity climbed 2c to reclaim €1.15, as 9,194 shares were exchanged across five deals. Ryanair announced on Monday that it will start operations on four new routes by the last quarter of this year, linking Malta International Airport with Girona, Bari, Bremen and Stockholm. Unfortunately, this news did not spur any positive impetus for the airport operator, which closed the session unchanged at Lm1.38.

Similarly, investors shrugged off newspaper reports of a Maltacom subsidiary's expansionary plans, and just a single trade was executed for 1,000 shares at Lm1.45. At the end of the session, the best bid was for 150 shares at Lm1.43 against supply of 2,000 shares at Lm1.449.

Supply in Simonds Farsons Cisk was partially met by demand as 5,000 shares were exchanged at the 90c level, leaving a further 5,000 shares supplied, while trading activity in Medserv was also conducted without adjusting its previous traded price of Lm1.60.

The government section of the fixed income market was the main focus on the day, overshadowing the equity market and moreover the corporate bond market. Sovereign stocks are falling in price in anticipation of a rate hike from the Central Bank of Malta. The MSE index closed 0.45 per cent higher at 4,888.310 points.

European stocks in positive territory thanks to carmakers

European equities were higher in morning trade yesterday, led by mobile telecoms groups and carmakers. Falling oil prices helped carmakers push higher. French manufacturer Renault, whose no-frills Logan model is being marketed in Mexico this summer and is expected to sell between 20,000 and 30,000 models a year, rose 2.8 per cent. Italy's Fiat, meanwhile, was up 2.4 per cent after chief executive officer Sergio Marchionne said that hopefully by the end of this quarter the company would announce an international strategic alliance.

The FTSE Eurofirst 300 was up 0.2 per cent and Frankfurt's Xetra Dax added 0.3 per cent. The CAC 40 in Paris, which moved higher on Monday as one of the few European equity markets open, retreated 0.1 per cent.

London equities moved higher in morning trade after an extended bank holiday weekend. Banks were in focus on further bid news while Vodafone cheered investors with strong annual results. The FTSE 100 and the FTSE 250 rose 0.4 per cent respectively.

Japanese shares continued to drift higher after data showed an unexpected drop in unemployment. The Nikkei 225 closed up 0.5 per cent while the broader Topix gained 0.8 per cent.

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.