Financial news
Index flat in dull session
The MSE Index closed a lacklustre session yesterday practically flat at 4,879 points as investor activity in the equity market was concentrated around just two companies.
HSBC Bank Malta remained the most liquid and actively traded with 17,740 shares changing hands across 11 transactions.
The day's turnover amounted to Lm33,728 with the price fluctuating between a low of Lm1.90 and a high of Lm1.90,5, and closing the day at Lm1.90,1, which represents the slimmest of gains.
Trading activity in Bank of Valletta consisted of 4,410 shares which were swapped across 10 transactions.
The equity closed the session unchanged at Lm3.60 but not before touching an intra session low of Lm3.58,5. At the close of business, 1,000 shares were best bid at Lm3.58,5 against supply of 42,571 shares offered at the Lm3.60 level. Elsewhere in the market, Lombard Bank Malta failed to react to a newspaper report that the Consumer and Competition Division would be examining the transaction related to the transfer of shares of Maltapost plc held by the Government to Lombard Bank to assess its compliance under regulations of the Competition Act.
Similarly, Maltacom and International Hotel Investments which will be both reporting this week, their interim figures for the period ended June did not attract any investor interest, although fairly sizable offers remain outstanding at their previous closing prices of Lm1.45 and €1.10 respectively.
Business in the fixed interest sector of the market was more brisk with four corporate and three government stocks attracting trades. All deals struck in the bonds of commercial enterprises did not change or affect their previous closing prices, while there were gains in the price of sovereign issues.
European stocks positive
Yesterday, European stocks climbed and US index futures advanced on speculation the global credit debacle will be limited to the financial industry and won't spread to the broader economy.
Germany's DAX lost 0.2 per cent, while France's CAC 40 added 0.1 per cent. The Stoxx 50 also rose 0.3 per cent and the Euro Stoxx 50, a measure for the euro region, gained 0.1 per cent.
Britain's FTSE 100 share index rose by mid-session, led by battered financials after US stock market futures turned positive on hopes of an interest rate cut by the Federal Reserve.
The Japanese stock market fell sharply after several days of calm, responding to the worst day on Wall Street in three weeks overnight. However, after dropping as much as 2.8 per cent, the Nikkei 225 recovered a bit to end the trading day down 1.7 per cent at 16,012.83. The broader-based Topix also fell 1.7 per cent, to 1,557.55.
The US S&P 500 fell 2.4 per cent to 1,432.36 on Tuesday, after figures showed US consumer confidence suffered its worst fall in two years, heightening concerns about the outlook for the US economy. The slide in US shares hit domestically focused sectors, prompting sharp slides in Japanese securities and property companies.
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.