Financial News

Activity remained robust during the final trading session of the week with all major equities attracting trades in good volumes. The MSE Index was weighed down by weakness in its largest component and closed lower by 0.22 per cent at 4,905 points.

HSBC Bank Malta was the most actively traded equity of the session with 28 transactions accounting for a total turnover of 20,561 shares. The equity closed weaker by 0c8 or 0.4 per cent at Lm1.98,5 but not after touching an intra session low of Lm1.96,5. This session marked the final cum-div day, with all investors holding shares at the end of the day gaining entitlement to a gross interim dividend of 6c4 and a further gross special dividend of 4c per share.

Bank of Valletta was the day's most liquid equity with a grand total of 29,613 shares, carrying a market consideration in excess of Lm106,600, changing hands across 20 transactions. All deals were executed at the Lm3.60 level, which represents a 2c premium to its previous closing price. At the end of the session, a further 4,496 shares remained outstanding on the offer side at the closing level against supply of 3,400 shares best bid at Lm3.57.

Activity in International Hotel Investments, the third largest company by market capitalisation, consisted in a single deal whereby two investors swapped 25,000 shares at the €1.03 level, which represents a 1.9 per cent discount to its previous closing price.

Buyers of Maltacom shares cleared all supply at the Lm1.42 level by scooping up 18,690 shares in eight transactions. At the end of the session the best remaining bid stood for 809 shares at Lm1.40,1 against supply for 6,700 shares, now offered at Lm1.45.

Elsewhere in the market, Simonds Farsons Cisk gave back a penny as 2,857 shares knocked its price back down to the Lm1 level.

Europe slips on credit worries

By late-morning yesterday, European equity markets surrendered early gains and moved lower, weighed down by weakness in the oil and mobile telecoms sectors and ongoing nervousness over conditions in credit markets. Concerns over German banks exposure to problems in the US sub-prime mortgage market continued to affect the sector. The FTSE Eurofirst 300 slipped two points, or 0.1 per cent, to 1,534.98 while in Germany, the Xetra Dax lost 11.7 points, or 0.1 per cent, to 7,522.96, while in Paris, the CAC 40 retreated 18.5 points, or 0.3 per cent to 5,663.6.

Tokyo stocks held above Wednesday's three-and-a-half-month low as signs that the yen's recent rise was easing buoyed export-dependent manufacturers. The benchmark Nikkei average yesterday closed trading almost unchanged, down 0.03 per cent at 16,979.86. The broader Topix index edged up 0.19 per cent to 1,672.54. The Japanese currency, which had strengthened to around Y118 to the dollar by mid-week from around Y123 in early July, was trading near Y119.

US stock-index futures fell after American Home Mortgage Investment Corp. told staff it will shut down as the subprime-market rout spread to people with good credit records.

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.