Index lower on BOV drop

The Malta Stock Exchange registered a drop on the last trading session of the week, as a drop in Bank of Valletta and International Hotel Investments shares, dragged the Index marginally lower, even though more than half of the equities trading on the day closed in positive territory.

BOV shares dropped 5c9 on the execution of the highest number of deals, to close below the important psychological level of Lm3.60 and settle at Lm3.55,1.

GlobalCapital rallied by 4.88 per cent to close at Lm2.15, supported by relatively good volumes. The equity edged closer to this year's high of Lm2.19,9 reached on January 10. The most capitalised equity on the Index, HSBC Bank Malta managed to regain the Lm1.90 level on the exchange of 5,810 shares. IHI was amongst the losers on the day, as the euro denominated equity shed three euro cents to close at €1.

A single trade in Lombard Bank propelled the equity higher by four cents to end the session at Lm4.94.

Maltacom shares regained all the recently lost ground as the re-branded company won an appeal this week with Malta Communications Authority over its interconnection agreement with Melita Cable. The telecommunication company closed seven cents higher at Lm1.45.

Middlesea was yesterday the other gainer as the exchange of 1,254 shares pushed the insurer higher to Lm1.75 setting off Wednesday's losses.

The most and least heavily traded equities in volume terms, closed both unchanged as FIMBank and Simonds Farsons Cisk respectively closed at US $1.90 and 99c.

Tokyo shares pulled up by US gains

Japan's Nikkei share average ended its four-day losing streak yesterday, taking its cue from overnight gains in the US stock market. The Nikkei closed up 0.5 per cent at 17,932.27 while the broader Topix, which covers all Tokyo Stock Exchange first-section stocks, rose 0.6 per cent to 1,751.12.

London equities started to recover in opening yesterday, taking the lead from strength on US and Asian markets overnight, with property stocks dominating the leaderboard on renewed deal hopes. The FTSE 100 started the day 0.5 per cent higher at 6,561.5, a gain of 33 points. Mid-cap investment companies helped the FTSE 250 rise one per cent to 11,504.1 on relief at respite from the sustained losing streak on equities markets. Property companies stood out amid fresh talk of potential consolidation.

US equity benchmarks rebounded sharply on Wednesday, with strength in technology and energy stocks a boost for sentiment as the Federal Reserve's two-day meeting on interest rates got underway. Stocks shrugged aside a drop in May durable goods orders and worries over the subprime mortgage market that was accompanied by a surge in volatility during early trade.

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.