Financial news

The Malta Stock Exchange closed off the week on a negative note as drops in financial stocks pushed the market down 0.048 per cent to close the week at 4,878.614 points.

FIMBank was the laggard on the day as investors reacted negatively to the interim set of results that were published yesterday. The Group registered a 22 per cent increase in net interest income and a similar increase in net fees and commission income. Nonetheless the dollar denominated equity shed over two per cent to close the week at $1.90.

Minor selling activity in Middlesea Insurance pushed the equity lower as a single investor offloaded 944 shares at the Lm1.66 level. At the end of the session the best bid was for 2,238 shares at Lm1.65 against a supply of 2,125 shares offered at Lm1.69.

Trading in Bank of Valletta shares commenced at yesterday's closing price of Lm3.58 where 12,190 were exchanged at this level. However, towards the end of the session selling pressures had the upper hand as the price was forced down by 0c5, to close the day at Lm3.57,5.

Although the euro denominated equity came off from the average volumes registered this week, International Hotel Investments still managed to gain a further euro cent on the exchange of 15,478 shares. The equity closed off its positive week at €1.07.

Maltacom was the only other equity that closed off its week on a positive note with the telecommunication company inching higher by a minimal of margin of one-tenth of a cent to Lm1.45.

Elsewhere in the market, 14,189 HSBC Bank Malta plc shares were exchanged between five transactions without affecting its previous closing price of Lm1.93.

Global stocks fall

Yesterday, European shares snapped a five-day winning streak, easing into negative territory amid fears problems in the subprime market and the ongoing credit squeeze could hamper global growth. The FTSE Eurofirst 300 index slipped 0.5 per cent. Germany's Xetra Dax fell 0.6 per cent, while in Paris the CAC 40 shed 0.3 per cent.

The London market extended its winning streak to a fifth straight session but it was a close call. Up 90 points in early trade, the FTSE 100 faded to end just 0.9 points higher at 6,196.9. The FTSE 250 improved 35 points, or 0.3 per cent, to 10,945.7. Trading volumes remained weak, with just over three billion shares changing hands.

In Asia stocks fell, while debt prices and the yen edged higher, on fresh concern that US housing and credit market problems could push the world's biggest economy into recession.

The Nikkei share average closed down 0.4 per cent as investors squared their positions ahead of Japan's Cabinet reshuffle, though it finished the week up 6.4 per cent to post its biggest weekly percentage gain since October 2002.

US stock-index futures dropped as investors speculated the government will report new home sales fell to the lowest in seven years, prolonging the housing recession and adding to the concern that economic growth is slowing.

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.