Financial news

Local equities registered gains for the third consecutive session, although volume activity dwindled when compared to the previous two sessions. Nevertheless, buying activity was enough to push the MSE Index two ticks higher and close at 4,843 points.

Malta International Airport was the day's top gainer as 2,700 shares were purchased across three transactions, helping the equity gain 1c or 0.74 per cent to terminate the session at Lm1.36, which represents a two-month high.

Demand for Bank of Valletta provided support for the equity at the Lm3.58 level. The day's activity consisted of 5,500 shares which were struck across five deals helping the equity close 0.14 per cent higher at Lm3.58,5. On the contrary, FIMBank shares gave back 0.5 per cent to $1.94 as 18,183 shares were traded over five transactions, while all five deals in HSBC Bank Malta were struck at the Lm1.91 level.

Elsewhere in the market, 1,100 shares were collected off Maltacom's offer side without affecting its pervious closing price of Lm1.44 and similarly, two shareholders swapped 500 shares in Simonds Farsons Cisk at the Lm1 level.

Grand Harbour Marina released a public announcement made by its major stakeholder holder Camper & Nicholsons Marina Investments Ltd which stated that its offer had been accepted by 9.2 per cent of company's free float, and would seek a dispensation from the Malta Financial Services Authority so as to maintain its listing on the Malta Stock Exchange.

Separately, Datatrak Holdings, quoted on the Alternative Company's List, announced that CI OmniBridge Ltd, a wholly owned subsidiary of Control Instruments Group which specialises in the development and provision of globally applicable fleet management products and services for the commercial vehicle market, acquired the 1,288,920 Datarak ordinary shares held by Siemens VDO at a price of 26c per share, which represents a 3c or 13 per cent premium from the last closing price.

European markets down on BNP Paribas news

Yesterday, European equity markets were spooked as BNP Paribas became the latest casualty of the US subprime mortgage market, forcing it to suspend three of its funds. After two sessions of financial sector-backed gains, the main European indices were knocked sharply lower by those same stocks. BNP, the French bank, fell three per cent after it said it had suspended redemptions on three funds - Parvest Dynamic ABS, BNP Paribas ABS Euribor and BNP Paribas ABS Eonia - following the "complete evaporation of liquidity". The bank stressed its exposure to subprime was negligible, but that recent market jitters had made it impossible to calculate the net asset value of these funds. The FTSE Eurofirst 300 was down one per cent, Frankfurt's Xetra Dax fell 1.2 per cent, the CAC 40 in Paris shed 1.3 per cent and London's FTSE 100 lost one per cent.

Tokyo shares closed higher, driven by gains in the shares of exporters and strong quarterly earnings for several companies. The benchmark Nikkei 225 average closed up 0.8 per cent, while the broader Topix index rose 0.9 per cent.

US stock-index futures fell on renewed concern that losses tied to subprime mortgages will spread through credit markets, threatening earnings at banks and brokerages.

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.