Financial news

The Malta Stock Exchange had a positive, albeit slow start to the week, as the MSE Index edged higher thanks to some gains in Bank of Valletta and Maltacom. The Index closed 0.114 per cent higher at 4879.421 points. Activity in equities amounted to 28,126 shares which were spread across 26 trades.

Over half of the deals affected during the session were executed in Maltacom shares, which was the most liquid equity in the session in terms of both volume and trades. The telecommunication company climbed nearly 2c to close at Lm1.458. The equity registered the exchange of 19,293 shares across 15 deals, and at the end of the session outstanding bids were for 707 shares at the Lm1.402 level against a supply of 2000 shares at Lm1.455. Prevailing demand and supply conditions at the end of the session look likely to put some marginal downward pressure on today's open.

HSBC Bank Malta traded lower on relatively low volumes, as the index heavyweight closed at the day's low of Lm1.92. The equity dropped nine-tenths of a cent on the execution of four trades with a carrying amount of 1,614 shares.

On the contrary BOV shares opened the session on an upbeat note as the equity's first trade was executed at the Lm3.62 level, 2c higher than Friday's close. Subsequent trades in the share pushed the banking equity up by a further cent to see the day off at Lm3.63.

A couple of trades in Middlesea Insurance saw the equity drop by 3c8 as lack of demand for the equity propelled the insurance company lower. The company was the worst performer on the day, as it closed two per cent lower at Lm1.86.

In the fixed income sector of the market, trading activity in the corporate bonds was spread over five different issues with no particular trend. On the other hand we saw a continuation of the recent negative trend in the government bond segment of the market, as yields moved further upwards in response to the recent rate hike by the Central Bank of Malta and in anticipation of another rate hike by the European Central Bank later on this week.

Profit taking leads to losses by European equities

Yesterday, European equity markets slipped as profits were taken following last week's strong gains, while a sharp drop in China weighed on sentiment. Among the losers were utility stocks, as the bid rumours and cash giveaways that contributed to the sector's sharp gains last week, gave way to profit taking.

By late morning, the FTSE Eurofirst 300 was down 0.3 per cent, Frankfurt's Xetra Dax shed 0.4 per cent and the CAC 40 in Paris lost 0.4 per cent.

London equities eased back from six-and-a-half-year highs, with losses for business publishing stocks on expectations of increased competition in the sector. The FTSE 100 started the session 0.1 per cent lower. The FTSE 250 was 0.4 per cent with mid-cap investment companies lower in line with profit taking on European bourses after last week's strong run.

Japanese shares edged higher, taking heart from some robust data released both domestically and in the US. The Nikkei 225 closed 0.1 per cent higher while the broader Topix index added 0.3 per cent.

US stock-index futures dropped before a factory-orders report that may show economic growth has recovered enough to rule out a cut in interest rates.

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.