Financial news

The Malta Stock Exchange opened this week just where it left on Friday, as no gain were registered yesterday, with the two largest companies closing below important physiological support levels. At the end of the session the Index terminated down 0.29 per cent, at 4,815.016 points.

Bank of Valletta closed two cents below the Lm3.60 level as the equity closed at day's low, after the exchange of 3,714 shares across nine deals.

After trading at an intra day low of Lm1.89,1, HSBC Bank Malta managed to gain some ground and close one tenth of a cent shy of the Lm1.90 support level. At the end of the session there stood 460 shares on the offer side at Lm1.89,9, against a demand for 1,500 shares at the Lm1.89,1.

Malta International Airport was amongst today's losers, as the airport operator's shares slipped 1.11 per cent or 1c5 on the highest number of volumes on the day, with 9,000 shares exchanged across three deals.

Middlesea Insurance was the day's worst performer, as lack of liquidity forced some pushy seller to off-load a small stake of 250 shares at a price of Lm1.72.

There were also a good number of non-movers on the regular market yesterday, as we had four different companies closing the session unchanged.

GlobalCapital closed the day at Lm1.80 on the execution of one deal carrying 1,000 shares. A single deal was also executed in Maltacom shares that left the price unaltered at Lm1.41.

On the other hand International Hotel Investments and Simonds Farsons Cisk, both registered a relatively higher level of volumes, as 8,350 shares were traded in the euro denominated equity and 8,461 shares were dealt in the local brewer. IHI shares closed at €1.05 whilst Simonds Farsons Cisk closed at Lm1.

Nikkei rises

Yesterday, the European chemicals sector was in focus after ICI rejected a £7.2bn takeover approach from Dutch rival Akzo Nobel. In the wider market, the FTSE EuroFirst 300 was down 0.1 per cent. Elsewhere, aerospace stocks were higher ahead of the opening of the Paris Air Show today.

London equities were trading slightly below Friday's high close by midday yesterday, as investors poured in to Imperial Chemical Industries following the company's rejection of Akzo Nobel's bid. The maker of Dulux paints told shareholders it unanimously rejected Akzo's offer because it "significantly undervalued" the company. Market rumour linked ICI with potential rival offers from Dow Chemical in the US and BASF in Germany. The FTSE 100 was trading steadily, six points lower at 6,726.4, by 1230. The FTSE 250 was 0.2 per cent lower.

The yen weakness and strong rises in property and shipping stocks helped push the Nikkei up to its highest closing level in almost four months yesterday. The Nikkei 225 rose one per cent to 18,149.52. The broader Topix advanced 0.9 per cent to 1,788.39. In the late afternoon the yen was trading at Y123.5 to the dollar, near a four-and-a-half year low.

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.