Financial News

Local equities commenced the new week on a cautious footing with slim gains in the top two companies, being outweighed by stronger declines registered in the third and fourth largest companies by market capitalisation. As a result the MSE Index shed 0.26 per cent to close yesterday's session at 4,842 points.

Continued buying activity in HSBC Bank Malta helped the equity gain nine-tenths of a cent to close at Lm1.91. The day's activity consisted of 11,650 shares carrying a market consideration of Lm22,248, which were swapped across seven transactions.

Bank of Valletta shares moved within a very tight range, merely trading 0c1 higher and lower than its new closing level of Lm3.61. A total of 2,399 shares changed hands over five transactions leaving, at the close of the session, 1,204 shares on the bid side at Lm3.60 against supply of a further 1,561 shares best offered at Lm3.61.

A single transaction for 1,000 shares brought a four per cent decline to International Hotel Investments share price which traded back at the €1.00. This transaction resulted in excess of €14.3 million worth of market capitalisation being struck off shareholder's valuation statements.

Activity in Maltacom picked up nicely with 18,490 shares being exchanged across three transactions. The equity touched an intra-session low of Lm1.438 before closing the session at Lm1.44, which represents a 0c5 or 0.4 per cent discount to Friday's closing level.

Elsewhere in the market, single deals in Simonds Farsons Cisk and Datatrak Holdings did not affect their previous closing prices of 98c and 23c respectively.

In the fixed interest sector of the market, activity was spread across three corporate bonds and 10 government bonds. All corporate bonds traded unchanged while the 5.10 per cent MGS 2022 gained 275 ticks to reclaim par.

European shares advance

Yesterday, takeover speculation helped Numico lead the FTSE EuroFirst higher. The Dutch baby foods group jumped to a six-year high amid reports that Danone of France was eyeing a bid. PepsiCo was another name in the frame. National benchmarks gained in all of the 18 western European markets, except Spain.

London equities made gains in morning trade following a rise in US stocks on Friday but housebuilders fell heavily after a veiled profits warning from Bovis. The leading blue-chip gainer was Tate & Lyle after Credit Suisse upgraded the sugar and sweetener maker from "neutral" to "outperform". In the wider market, the FTSE 100 gained 0.2 per cent by late morning while the mid-cap FTSE 250 traded four points lower at 11,863.5 as housebuilders weighed.

Tokyo stocks gained as strong Japanese machinery orders data lifted machine tool makers and rising oil prices boosted energy companies. The benchmark Nikkei finished the trading day up 0.7 per cent as did the broader Topix index.

The US economy's take-off from a near standstill in the first quarter may prove bumpier than the Federal Reserve and many on Wall Street expect tighter credit acts as a headwind to growth.

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.