Financial news
BOV gain as Index declines
The MSE Index closed yesterday's session slightly in negative territory at 4,878 points, as declines in HSBC Bank Malta weighed heavily on the market's overall directions. Volume activity picked up nicely with trades being executed in seven different equities.
HSBC Bank Malta was the day's most actively and liquid equity with a grand total of 40,510 shares, carrying a market consideration of Lm77,001, being exchanged across 28 transactions. Activity was initially dominated by sellers who offloaded shares down to the Lm1.89 level before a few buyers trimmed the day's losses to just 1c1 or 0.6 per cent at Lm1.90.
On the contrary, Bank of Valletta was the day's top performer as 5,291 shares were swapped across 11 transactions, with the equity reclaiming the Lm3.60 level for the first time in 10 days.
A few minutes into the session, Datatrak Holdings reported its interim results for the period ended June 30, 2007 which showed a loss before tax of Lm55,726 compared to a profit of Lm52,397 registered during the comparable period last year. The decline was the result of a lower operational performance, with a 12 per cent decrease in turnover and increases in amortisation costs, staff costs and higher marketing and financing costs. For the second half of the year, the group highlighted the requirement of additional financing which could otherwise jeopardise part of its planned business expansion.
Malta International Airport terminated the day at the Lm1.40 level, which represents a 0c5 premium to its previous closing price, as 7,000 shares were purchased across four transactions.
Maltacom, Simonds Farsons Cisk and International Hotel Investments all finished yesterday's session unchanged at Lm1.45, Lm1.02 and €1.10 respectively.
Global stocks drop
Yesterday, European equities ended a seven-session rally, reflecting losses on Wall Street overnight as investors resorted to some profit-taking amid weak US housing data. The FTSEurofirst 300 opened 0.7 per cent lower. The Xetra Dax 30 eased 0.3 per cent in Frankfurt in early trading. Meanwhile, the CAC 40 lost one per cent in Paris.
London equities came off a six-session recovery rally to open with losses, with high street banks lower on reports of further exposure to the US subprime lending crisis. The FTSE 100 opened 0.4 per cent lower. Strength in mid-cap oil services stocks helped the FTSE 250 to a 0.1 per cent gain. The Japanese stock market edged lower, weighed down by a slightly stronger yen and the poor US home sales figures. The Nikkei 225 declined 0.1 per cent, while the broader Topix was down 0.2 per cent.
US stock-index futures declined on concern that fallout from the subprime-mortgage rout will weaken consumer confidence and hurt economic growth.
Bank of America Corp., the second-largest US bank, fell in Europe. Bear Stearns Cos. Citigroup Inc. and Lehman Brothers Holdings Inc. dropped after Merrill Lynch & Co. downgraded the stocks.
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.