Investor sentiment seemed mixed during yesterday's trading session on the Malta Stock Exchange with slight declines in three equities being softened by a gentle gain in heavyweight HSBC Bank Malta, resulting in the Index closing practically flat at 4,876 points.
HSBC Bank Malta was the only equity to close the session in positive territory.
There was a marked increase in demand for shares which was met by a stable flow of supply, where investors increased their offer prices by small amounts throughout the day.
A total of 12,251 shares were transacted across eight deals with the price closing the session at Lm1.93,6. HSBC is due to report its interim results over the next few weeks.
The day's most liquid equity was International Hotel Investments where a grand total of 58,603 shares carrying a market consideration of €61,393, were exchanged across eight transactions. The equity dipped just slightly but recovered in time to close unchanged at €1.05.
Bank of Valletta dropped a penny late in the session when merely 500 shares were sold in rapid succession across two transactions forcing the price to close at the Lm3.59 level.
Similarly, Middlesea Insurance shed 2c or 1.4 per cent to Lm1.73 as 800 shares were sold in the dying minutes of the session. The same amount of shares traded in Malta International Airport, squeezing the price lower by 1c1 or 0.8 per cent to Lm1.73.
In the fixed interest sector of the market, activity was spread across four government stocks and seven government bonds. The sole "AAA" rated bond on the market, issued by the supranational European Investment Bank, attracted 5,000 nominal across two transactions without altering its previous closing price of Lm98.25. Elsewhere, the 6.40 per cent Gasan Finance 2008/11 gained 100 ticks as 15,000 nominal were picked up from the offer side at 101 per cent of par.
Markets positive
Yesterday, European stock markets rebounded following an overnight rally on Wall Street. Alstom was a leading gainer as first-quarter figures from the French manufacturer of high-speed trains came in ahead of analysts' expectations.
In London the FTSE ended the morning session in positive territory, lifted by Rio Tinto's $38 billion bid for Alcan and as investors shrugged off sub-prime mortgage concerns. Rio, the world's second-biggest mining company, made a cash offer of $101 a share for Alcan, valuing its Canadian rival at $38.1 billion.
The Japanese stock market's muted morning recovery fizzled out in the afternoon due to fears of a global slowdown in the chip sector.
By the end of trading, the Nikkei 225 was down 0.4 per cent. The broader Topix fell 0.3 per cent.
US stock-index futures rose after Wal-Mart Stores Inc. reported sales that topped its forecast and investors speculated Alcoa Inc. may be taken over.
Wal-Mart, the world's largest retailer, and Alcoa, the second-biggest aluminum producer, led gains among Dow Jones Industrial Average members. Genentech Inc. advanced after reporting profit that beat analysts' estimates.
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.