Financial news

The table turned during the final session of the week as low volume selling activity gave way to slightly more consistent buying interest, buoyed by kick-off of the summer interim reporting season. As a result the MSE Index gained 0.39 per cent to close the week at 4,883 points.

Malta International Airport reported a good set of interim results for the period ended June 30, with pre-tax profit surging by 32.1 per cent to Lm1.7 million, thanks to an increase in passenger through-put and aircraft movements. The board of directors maintained the same previous dividend of 2c5 which will be distributed to all holders of shares on the company's register on the August 3.

The equity reacted positively to the news and was the day's top gainer with investors pushing the equity higher by 2c or 1.5 per cent on purchases of 3,718 shares across five transactions. All supply up to the Lm1.35 level was cleared leaving the next offer at Lm1.37 for 12,470 shares.

HSBC Bank Malta traded within a tight trade range, but still managed to close the day in positive territory gaining 1c or 0.5 per cent to close the week at Lm1.95. Similarly, Bank of Valletta closed the week on the bright side, by reclaiming the Lm3.60 level as 1,565 shares were swapped across five transactions.

Elsewhere in the market, FIMBank traded unchanged at the $1.95 level as 7,900 shares were swapped early in the session across two transactions. Likewise GlobalCapital traded unaltered at the Lm1.90 level as a mere 55 shares were transacted between two investors.

A lack of offers in the market on Maltacom, forced the hands of buyers who upped their bids to the Lm1.42 level, which represents a 2c premium to its previous closing price.

European stocks drop

In a volatile start to yesterday's session European stocks recovered some of Thursday's heavy losses before falling back on continuing fears of a credit squeeze. The FTSEurofirst 300 index fell sharply in early trading, then rose into positive territory before falling back again as traders' nerves remained frayed. The Eurofirst 300 was down 0.2 per cent. The Dax was down 0.6 per cent while the Cac was flat at 5673.51.

UK equity markets were highly volatile after stocks in Asia and the US tumbled heavily amid a flight from risk over persistent fears about exposure to credit markets. London's FTSE 100 endured similar turbulence, falling 0.9 per cent soon after the open - dipping below its starting point for the year - before rallying sharply to turn one per cent higher.

In Japan, the benchmark Nikkei average dropped 2.4 per cent to its lowest level in three months, also dogged by domestic political uncertainty, while the yen hit a three-month high against the dollar as carry trades were unwound.

US stocks were poised to extend their biggest drop in five months on growing concern that takeovers will slow after Cadbury Schweppes Plc delayed the sale of its US beverage unit.

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.