Financial news

Following Monday's significant drop, the MSE Index gained 0.7 per cent to 4,832 points during yesterday's trading session with relatively sound volumes witnessed in both the equity and bond sector.

Maltacom was the day's most liquid and actively traded equity with strong buying activity clearing a relatively large overhang of shares up to the Lm1.44 level. A grand total of 81,190 shares, carrying a market consideration of Lm116,504, were exchanged across 17 transactions, with the equity gaining a full percentage point in the process.

Renewed buying activity in HSBC Bank helped the equity bounce back from the doldrums after the equity more than adjusted to the fact that it commenced trading ex-dividend. During yesterday's session, as many as 9,287 shares were purchased at the Lm1.90 level, which represents a 3c premium to its previous closing price. Activity in Bank of Valletta consisted in 3,440 shares which were exchanged across seven transactions with the equity terminating the session unchanged at Lm3.58.

The day's top gainer was Grand Harbour Marina with a 2c4 or 3.2 per cent rise, after 7,100 shares were purchased across a single trade. The deal was executed at the 78c level, which represents a 4.7 per cent premium to Camper & Nicholsons Marina Investments Ltd's mandatory offer of 74c5.

Gains were also in store for Malta International Airport which climbed 0.75 per cent to Lm1.35 on turnover of 3,490 shares, while Plaza Centres traded unchanged at 68c.

Shortly before the opening bell, Lombard Bank Malta issued its interim results for the six months ending June 30, which showed a 26 per cent increase in pre-tax profits, published at Lm2.09 million.

The equity failed to trade on the day, with investors still crunching the reported numbers.

European stocks advance

Yesterday, European equity markets bounced strongly, taking their lead from Wall Street's biggest daily advance since 2003. Recently embattled financial stocks gained some relief as Bear Stearns, the US investment bank whose subprime mortgage-focused hedge funds were at the centre of recent credit market woes, bounced strongly on Wall Street overnight. Europe's large investment banks followed with rallies of their own. The FTSE Eurofirst 300 climbed 1.1 per cent, Frankfurt's Xetra Dax added 0.9 per cent and the CAC 40 in Paris gained 1.5 per cent.

In London the FTSE 100 made strong gains. The blue-chip index surged 1.2 per cent by late morning with financials and mining stocks to the fore. The mid-cap FTSE 250 rose 1.7 per cent. Fresh deal making in the mining sector helped energise investors.

US stock-index futures were little changed before Federal Reserve policy markets set interest rates and comment on the economy.

Japan's Nikkei stock average closed flat after starting the day on a positive note, as momentum fizzled out amid a lack of foreign buying. The Nikkei 225 closed up just 0.04 per cent in weak volume. The broader Topix dropped 0.5 per cent to 1,660.16, its lowest level since January.

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.