Financial news

Local equities closed the opening session of the week at the Malta Stock Exchange on a positive note with the MSE Index gaining 0.338 per cent to close the day at 4,874.307 points, thanks to some widespread gains.

Middlesea Insurance was the day's top gainer with the share price moving up 4c or 2.42 per cent to close the session at Lm1.69. The company issued their interim results for the period ending June 30 which saw a 55 per cent increase in pre-tax profits over the corresponding period last year. Trading activity consisted of just 1,400 shares exchanged across three transactions leaving 2,238 shares best bid at Lm1.65 against a supply of 5,260 shares offered at Lm1.70.

International Hotel Investments was the most actively traded equity with a significant level of 118,217 shares being exchanged across seven transactions for a total market consideration of approximately Lm52,800. This strong buying activity pushed the equity higher by half a euro cent to end the session at €1.045.

Plaza Centres continued trading on its recent positive streak, with the share price gaining more ground, and crawling up by a further 1.43 per cent to close the first session of the week at 71c.

Similarly, Malta International Airport, Simonds Farsons Cisk and HSBC Bank Malta shares were also among yesterday's gainers with the share price climbing 1c5, 1c9 and 1c respectively. Trading activity was relatively low, as a mere total market consideration of Lm15,538 was traded across the three securities.

On the other hand, Bank of Valletta shares were the lonely laggards, where 2,546 shares were exchanged across nine transactions at today's average and closing price of Lm3.90, thereby shedding 0.17 per cent from Friday's close.

Elsewhere in the market, 2,500 shares of Maltacom plc were struck across three deals without affecting its previous closing price of Lm1.44. This is the ninth consecutive session that the equity has closed at this level.

Global stocks rally

European and Asian stocks rose, and US stock-index futures gained, after analysts recommended buying shares of financial companies and investors speculated the worst may be over in a rout of global equity markets.

National benchmarks increased in all 18 western European markets except Luxembourg. Indexes in Australia, Hong Kong and South Korea surged the most in at least five years.

Nasdaq Stock Market Inc., the second-biggest US equity exchange, may sell its 31 per cent stake in London Stock Exchange Plc as it faces growing competition for Sweden's OMX AB.

Nasdaq is considering selling its stake after twice being rejected in attempts to buy the UK market. The company will use about $1 billion of proceeds to retire debt and buy back shares, it said in a statement today.

The sale will increase earnings per share by as much as 35c next year.

The biggest rally in four years for the Standard & Poor's 500 Index on August 17 helped US stocks recover most of the week's losses. Goldman Sachs Group Inc., the largest securities firm, and JPMorgan Chase & Co., the third-biggest US bank, climbed today in Europe.

US stock-index futures gained on speculation the Federal Reserve will cut interest rates to reduce risks of a credit crunch hurting the economy.

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.