Financial news
Strong buying in BOV
Following a lacklustre session, local equities moved ahead in positive territory during yesterday's trading session at the Malta Stock Exchange with brisk buying activity particularly in Bank of Valletta shares which were the day's top performer.
In fact, Bank of Valletta was the day's most liquid and actively traded equity with a grand total of 87,755 shares, carrying a market consideration of Lm317,137, being exchanged across 50 trades. Initial buying activity saw a thick wall off supply at the Lm3.60 level being quickly eroded as large and sustained bids hit the offer side soon after the market opened. Buyers then pushed their bids higher, collecting shares up to the Lm3.65 level, which represents a 5c or 1.4 per cent premium over its previous closing level. At the end of the session, 5,000 shares were best bid at Lm3.60 whilst 2,345 shares remained outstanding at the Lm3.65 level.
Buying activity also spilled over to HSBC Bank Malta where 10,600 shares were purchased across eight transactions, thereby helping the equity gain 0c9 or 0.5 per cent and reclaim the Lm1.91 level.
Robust trading activity in FIMBank saw 56,450 shares changing hands across six transactions without affecting its previous closing price of $1.94. Similarly, trades in International Hotel Investments and Malta International Airport did not alter their previous levels of €1.10 and Lm1.40 respectively.
International Hotel Investments and Maltacom did not register any trades during the session. Both equities were expected to publish their interim results for the period ending June after the close of the day's session, while Medserv was supposed to publish its interim results on August 28.
The MSE Index gained 0.53 per cent to close at 4,905 points.
Global stocks rally
Yesterday, European equity markets rallied after Wall Street bounced strongly following comments from Ben Bernanke, Federal Reserve chief, that raised hopes of a US rate cut.
On Wednesday the Fed chairman reiterated the stance adopted last week, that the US central bank was "prepared to act as needed" to ensure credit market losses did not affect the economy.
The FTSE Eurofirst 300 was up 0.9 per cent, Frankfurt's Xetra Dax added 0.5 per cent, the CAC 40 in Paris climbed 1.2 per cent and London's FTSE 100 gained 1.1 per cent.
Asian stocks advanced after Esprit Holdings Ltd and Cnooc Ltd reported profit that beat estimates, reducing concern earnings in the region will be hampered by a slump in the US housing market.
The Nikkei 225 Stock Average added 0.9 per cent, while Hong Kong's Hang Seng Index rose 2.3 per cent. A decline in the yen helped lift Japanese exporters Sony Corp. and Nintendo Co.
US stock-index futures fell after Lehman Brothers Holdings Inc. said earnings at the country's largest securities firms will be hurt by the credit-market turmoil.
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.