The same banking sector equities that dragged the MSE Index lower on Wednesday were the protagonists which reversed its fortunes during yesterday's trading session helping the Index finish the day 0.3 per cent higher at 4,916 points.
Lombard Bank was the day's top gainer as strong buying activity, to the tune of 10,000 shares were purchased across three transactions at Lm4.97,5, the highest permissible level of the day. This level represents a seven per cent premium from its previous closing level, leaving at the end of the day 500 shares at a lowly Lm4.56 against supply of 1,000 shares at Lm4.99,9.
Buying activity in Bank of Valletta increased slightly with 8,521 shares carrying a market consideration of Lm30,477, being swapped across six transactions. The equity gained a penny towards the end of the session, closing at the Lm3.58 level.
HSBC Bank Malta too had a positive day, although the equity is still finding it hard to progress higher notwithstanding the positive interim results issued on Monday. The day's activity consisted in 22,510 shares with the price closing at Lm1.99,3. The equity is still trading with the right to receive a gross interim dividend of 6c4 and a gross special dividend of 4c.
A single deal for 50,000 shares in FIMBank was executed early in the session without affecting its previous price of $1.95.
Low volume buying activity in Maltacom helped the equity move higher by the slimmest of margins to reclaim the Lm1.42 level. The session's activity was made up of four trades and 2,600 shares.
Malta International Airport traded for the first time since the equity turned ex-dividend, however buying activity was robust with 20,700 shares being traded across nine transactions without altering its previous closing price of Lm1.35. The airport operator will be paying out a net interim dividend of 2c5.
Elsewhere in the market, trading activity in GlobalCapital, International Hotel Investments and Datatrak Holdings did not change previous closing prices of Lm1.90, €1.05 and 23c respectively.
European equities up thanks to banking stocks
Yesterday, European equity markets rallied after a last-minute bounce for US stocks overnight, while strong results from the bank sector also provided a lift. By mid-morning the FTSE Eurofirst 300 was up 0.4 per cent, Frankfurt's Xetra Dax added 0.6 per cent and the CAC 40 in Paris climbed 0.4 per cent.
London equities moved higher during the morning session lifted by a late rally overnight on Wall Street and strong interim numbers from Barclays. The FTSE 100 ended the morning session 0.6 per cent higher. Mid-cap asset management stocks helped the FTSE 250 recover 0.25 per cent. Overnight in New York, the Dow Jones Industrial Average zig-zagged as turbulent conditions persisted. But the market ended higher, up 1.1 per cent, helping to soothe fears about the medium-term outlook for credit markets in the wake of the subprime lending crisis.
Japan's Nikkei 225 closed up 0.7 per cent after dropping by more than one per cent to a four-and-a-half-month low at one point. Property stocks were boosted by reports of higher land prices in Tokyo but bank shares fell on worries that they will sustain damage from the credit market crunch.
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.