Local equities traded relatively flat during yesterday's trading session at the Malta Stock Exchange, although volume activity in the market indicates stake building by investors who are collecting shares from a relatively thick offer side.
HSBC Bank Malta reclaimed the top spot for liquidity and activity with a grand total of 37,680 shares, carrying a market consideration of almost Lm71,700, changing hands across 26 transactions. Trading was instigated by buyers who pushed the share higher by a penny to close the session at Lm1.91. The equity seems to be slowly recovering from Monday's session dive instigated by the equity commencing to trade without the right to receive the interim and special dividend for a combined gross amount of 10c6.
Activity in Bank of Valletta remained robust with a total turnover of 11,210 shares which were swapped across 11 deals. The equity swung within a 2c trade range below its unchanged closing price of Lm3.60. At the end of the session, however, best demand stood for 384 shares at Lm3.58 while 2,100 shares were offered at Lm3.59.
Elsewhere in the market, following Tuesday's hectic activity in Maltacom, buying activity continued unabated for the second consecutive session although volume declined slightly. In fact 20,365 shares were purchased across 13 transactions with the equity dipping slightly on initial low volume activity but recovering later in the day on larger chunks of trade. Maltacom is expected to report its interim results on September 20.
Lombard Bank Malta failed to attract any interest for the second day running following the publication by the company of its interim results for the six months ending June 30, which showed a 26 per cent increase in pre-tax profits to Lm2.09 million. This might be caused by the large bid-offer spread which currently exceeds 7.4 per cent. The MSE Index closed the session 0.2 per cent higher at 4,841 points.
Global stocks rise
Yesterday, European equity markets were higher for a second successive session driven by strong corporate earnings in the insurance sector. By midmorning, the FTSE Eurofirst 300 was up 0.7 per cent, Frankfurt's Xetra Dax added 0.4 per cent, the CAC 40 in Paris gained 0.8 per cent and London's FTSE 100 climbed 0.4 per cent.
Tokyo stocks edged higher, led by exporters, after comments by the US Federal Reserve boosted confidence in the US economy's ability to withstand the crisis in subprime mortgage lending. The benchmark Nikkei average ended up 0.64 per cent while the broader Topix index finished 0.53 per cent higher. Banks recovered some of the ground they have lost in recent sessions due to concerns over the widening debt mess. Mizuho Financial Group, Japan's second-biggest lender, gained for the first time in nine days, closing 3.6 per cent higher.
As stocks rose worldwide US index futures advanced after companies reported earnings that beat analysts' estimates and the Federal Reserve said losses in the US mortgage market probably won't hold back economic growth.
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.