Financial news

Trading activity remained strong during yesterday's trading session at the Malta Stock Exchange, with buyers and sellers contentedly exchanging shares at previous closing prices.

Malta International Airport was the only equity to close in positive territory, moving higher by 1c on two purchases for a total of merely 700 shares. MIA shares have remained relatively muted over the past few months notwithstanding various announcements that different low cost airline operators would be extending or initiating flights from new destinations over the summer to autumn period.

Typically, the most active and liquid equity was HSBC Bank Malta where 17,537 shares, carrying a market consideration of Lm34,718 were exchanged across 20 transactions. The equity quivered within a very tight trade range, but closed the session unchanged at Lm1.98, leaving a further unfilled supply of 1,792 shares at this level against visible demand of 135 shares at Lm1.96.

Bank of Valletta was the second most actively traded equity with 7,311 shares changing hands across 11 trades. The price briefly touched the Lm3.59 level, however the main activity during, and the last trade for, the day witnessed investors picking up shares from the wall of bids at the Lm3.60 level.

Activity in Maltacom consisted of 1,190 shares which were struck across two transactions. Investors seem to have shun the largest telecommunications player of the local market since last year, when the company was privatised at a discount to the then prevailing market price. Yet, the day's closing price of Lm1.41 now represents a 9.2 per cent discount to the Lm1.55,4 paid for a majority stake by Tecom Investments in May 2006.

The MSE Index closed the session flat at 4,916 points.

European stocks fall

Yesterday, European equity markets lost ground as investors worried about key economic figures in the US. Amid worries of further losses in the subprime mortgage market, the FTSE Eurofirst 300, which hit a new six-and-a-half year high on Monday, lost 0.8 per cent. Germany's Dax Index fell 1.3 per cent as investor confidence declined for a second straight month in July, while France's CAC-40 was off one per cent.

London equities fell back during the morning session as broker downgrades weighed and investors reacted cautiously to UK inflation data. The FTSE 100 lost 0.9 per cent, with only a handful of stocks in positive territory, while the mid-cap FTSE 250 fell 1.3 per cent.

Japanese stocks fell slightly with exporters dropping because of a slight rise in the yen. Monday's earthquake in the northwestern part of Honshu, Japan's main island, hit insurers. The Nikkei 225 ended down 0.1 per cent. The broader Topix fell 0.3 per cent. By late afternoon, the yen was trading at Y121.8 to the dollar. This pushed the autos sector down 1.3 per cent.

US stock-index futures declined after a gauge of wholesale inflation rose more than forecast, spurring concern that higher prices will hinder economic 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.