Financial news
European equities slightly lower
Yesterday, European stocks traded slightly lower despite a lift from the banking sector after Barclays increased its offer for ABN Amro. The FTSEurofirst 300 shed 0.1 per cent in morning trading. The CAC 40 index was down 0.3 per cent and the DAX was trading 0.2 per cent lower.
In London financial stocks led the gainers as Friends Provident and Resolution confirmed plans for a £8.3bn merger. The life assurance groups were the talk of the market on Friday amid rumours that a deal was being planned. The mergers and acquisitions activity helped the FTSE 100 rise 0.4 per cent, while the FTSE 250 slipped 6.6 points to 11,812.1. Japan's Nikkei 225 stock index sank to its lowest close in almost four weeks, hit by the poor performance on Friday of US shares. That dragged down both export-focused stocks and sectors in which price to earnings valuations had raced up over the past year before grinding to a halt in recent months on fears of overvaluation. The Nikkei and the Topix finished down 1.1 per cent respectively.
US stock-index futures were little changed before companies including Merck & Co., the third-largest US drugmaker, and Texas Instruments Inc. report earnings.
Big banks drag market
Local equities finished the first session of the new week in negative territory, dragged lower by last minute declines in heavyweight banking sector shares. Consequently, the MSE Index closed the day eleven points or 0.24 per cent lower at the 4,873 mark.
Bank of Valletta was the day's most actively traded equity with 9,021 shares changing hands across 16 transactions. The equity traded steadily at the Lm3.60 level until the dying minutes of the session when a partially filled order was completed by the sale of the remaining outstanding shares. This brought a 2c or 0.56 per cent decline to the price which closed at the Lm3.58 level.
Activity in HSBC Bank Malta was relatively muted with 5,060 shares accounting for the day's entire business.
The equity weakened by a penny or 0.5 per cent to Lm1.95 leaving at the end of the session, 6,000 shares outstanding on the bid side at Lm1.94 against 2,600 shares best supplied at Lm1.95,9. The day's most liquid equity was FIMBank where 48,650 shares, carrying a market consideration of $94,867, were exchanged across four transactions without altering its previous closing price of $1.95.
The day's top gainer was Plaza Centres which immediately recouped all of Friday's declines. Buying activity for 1,800 shares quickly restored order, with the equity closing 3c9 or almost six per cent higher at 69c.
Plaza Centres will be reporting their interim results on the 3rd August.
Maltacom gained 1c or 0.7 percentage points on increased turnover which saw in excess of 10,303 shares being exchanged across seven transactions. Buyers were the strong force in the market, thereby pushing the price up to the Lm1.41 level.
Elsewhere in the market, 1,500 shares of Malta International Airport were exchanged without affecting its previous closing level of Lm1.33,5.
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.