Financial news

Trading activity diminished during the final trading session of the week as investors paused to get a clearer picture of the market's state of health following a particular busy two-week period during which no less than six companies issued their interim results.

International Hotel Investment was the day's most actively traded equity with 68,500 shares changing hands across 11 transactions. The equity initially declined to the €1.07 level but recovered very quickly to close the day unchanged at €1.10. After Thursday's market close, International Hotel Investments published its interim results narrowing its pre-tax loss by half compared to the 2006 period, to €1.6 million. The turnover and operating performance were positively affected by the addition of two hotel properties as from the start of June and the inclusion of the group's management company CHI Ltd.

Maltacom registered a disappointing trading session with a drop of 4c9 or 3.4 per cent to Lm1.40,1 on a mere 2,000 shares which were swapped across three transactions. The sudden illiquidity of the security was evident since Lm4.9 million worth of market capitalisation were wiped out on the exchange of 2,000 shares with carrying consideration of a mere Lm2,807. On Thursday, Maltacom reported a drop of 14.5 per cent in its pre-tax profits for the first half of the current year, to Lm5.4 million.

Performance was negatively impacted by certain restructuring costs aimed at improving efficiency and maximising Group synergies.

Although, the results were widely in line with market expectations, the failure to declare any interim dividend may have disappointed certain investors.

HSBC Bank Malta, the largest equity on the local market in terms of market capitalisation, gained 2c or a full percentage point to Lm1.93 as 5,257 shares were purchased across 11 transactions. The gains were recorded towards the end of the session as partially filled orders were completed against the best available offers.

Bank of Valletta showed resilience following their previous session's gains on strong volume and closed the day unchanged at Lm3.65 after touching a low of Lm3.63.

The MSE Index gained 0.05 per cent to close at 4,907 points.

Stocks around the world advance

Yesterday stocks rose in Europe and Asia before an announcement by US President George W. Bush that may help US sub-prime borrowers keep their homes. Standard & Poor's 500 Index futures rallied.

Mr Bush will let the Federal Housing Administration guarantee loans for delinquent borrowers, allowing them to avoid foreclosure and refinance at more favourable rates, according to an administration official. Mr Bush will back proposals to provide tax relief for homeowners who refinance.

National benchmarks advanced in all 18 western European markets. Germany's DAX Index added 0.9 per cent, while France's CAC 40 climbed 1.3 per cent. The UK's FTSE 100 increased 0.9 per cent. The yen fell against the world's 16 most-active currencies as Bush's plans to help mortgage borrowers revived confidence in borrowing in Japan to buy higher-yielding assets.

Anglo American, the world's second-biggest mining company, increased 2.3 per cent to 2,834 pence. Rio Tinto Group, the world's third-biggest, climbed two per cent to 3,372 pence. Copper for delivery in three months rose as much as 1.3 per cent to $7,495 a metric ton, in London.

Nickel, lead, zinc, aluminum, platinum and gold prices also gained. Total, Europe's third-largest oil company, rallied 1.6 per cent to €55.17. Royal Dutch Shell Plc, the region's biggest oil company, gained 1.2 per cent to 1,920 pence.

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.