Financial news
Low volumes see Index lower
The Malta Stock Exchange registered a drop of 0.111 per cent on the last day of trading for the week, as a one per cent drop in HSBC Bank Malta shares, dragged the Index lower, to close off the week at 4,830.137 points.
As the largest constituent on the Index, a drop of 1c in HSBC shares propelled the Index lower, offsetting gains elsewhere in the regular market. The Index heavyweight slipped 1c below the important Lm1.90 level on the exchange of 8,550 shares.
Bank of Valletta opened the session three-tenths of a cent lower, but subsequent trading in the equity pushed the share higher to yesterday's close of Lm3.64, where it finally settled. At the end of the session there stood 2,000 shares at Lm3.61 on the bid side, against an offer for 10,982 shares at Lm3.64.
Trading activity in Malta International Airport was spread across 8,500 shares and six deals to leave the share price unchanged at Lm1.33.
GlobalCapital was today's star performer, in terms of both price performance and volumes, as the diversified financial company gained 1c5 on the exchange of 17,300 shares. The equity closed 0.79 per cent higher to close off at Lm1.91,5.
Maltacom was the other gainer on the day as the telecommunication company climbed 1c to Lm1.41, on the exchange of 2,700 shares across three deals.
On the fixed income sector of the market, activity was spread across five corporate stocks with significant gains for the 5.6 per cent euro-denominated GlobalCapital bond, and eight sovereign issues, all of which closed unchanged.
European stocks decline following Ifo report
Yesterday, European equities edged lower as oil companies fell after a drop in crude prices overnight, with pressure also on financial stocks. The market's weakness was also the result of a sharper-than-expected fall in German business confidence, measured by Ifo, the economic institute. This echoed Monday's fall in investor sentiment from the ZEW group. In late morning trade the FTSE Eurofirst 300 was down 0.4 per cent as did Frankfurt's Xetra Dax and the CAC 40 in Paris lost 0.2 per cent.
London equities were losing ground by midday as financial stocks sagged with investor concern over banks' and asset managers' exposure to sub-prime mortgage assets in the United States. By noon the FTSE 100 was trading 0.3 per cent lower.
Japan's Nikkei 225 stock average dropped from a seven-year high, slipping 0.3 per cent. Analysts said Thursday's milestone had prompted investors to take a second look at their stock buying, on fears of overvaluation. The broader Topix index fell 0.6 per cent.
Overnight, Wall Street rallied after an uncertain start in equities reflected a similar pattern in other markets, suggesting investors are starting to seek a higher risk premium across asset classes.
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.