Financial news
Trading restricted to banks
Investors deserted the last trading session of the week on the Malta Stock Exchange, with trading on the equity market limited to low volume activity in the three major listed banks. Overall turnover reached Lm138,269, with the Malta Stock Exchange Index inching marginally lower by 0.24 per cent, to 4,919.997 points.
Bank of Valletta was the day's most liquid equity with an aggregate volume of 14,620 shares transacted across 17 deals. The share price was up 1c4 on the day, to Lm3.62,9 after having fluctuated within a range of Lm3.60 and Lm3.63 during the session. Overall the share price was down by 2c1 when compared to the closing level of the previous week. At the end of the session the best demand on the market was for 2,500 shares at Lm3.59, while the best supply remained at the closing price of Lm3.62,9 and was for 900 shares.
Activity in HSBC Bank Malta shares was rather subdued compared to normal trading levels. The equity still managed to register the highest gains for the day, with the share price advancing by 0.42 per cent, to Lm1.92,9.
FIMBank was the only other equity trading yesterday, with the shares of the trade finance specialist remaining muted at the USD1.94 level. Activity for the day totalled 40,883 shares which were spread over three deals. At the end of the session the market in the equity was characterised by a wide bid-offer spread with potential buyers bidding at a price of USD1.75 and sellers remaining keen to the day's closing price.
Difficult week for equities
On Monday, European equity markets made a positive start to trading and moved higher by mid-morning, helped by strength in the banking and carmakers sectors. Merger activity in the Nordic financial sector provided early interest.
On Tuesday, the Japanese stock market lost ground, hurt by some bad news on the corporate front and fears some sectors have become overvalued. Low trading volumes at times exaggerated the effect of individual buying and selling, creating a nervous market.
On Wednesday, European and Asian stocks fell on concern that the increase in borrowing costs caused by the collapse of US subprime mortgages will hurt banks' earnings. Standard & Poor's 500 Index futures also dropped. European stock markets retreated after strong gains in recent days.
On Thursday, news that eurozone and UK interest rates would be left unchanged failed to rally European equity markets. The European Central Bank held eurozone rates at four per cent while the Bank of England also opted for no change for the UK.
Yesterday, stocks in Europe and Asia fell, led by banks on concern that the contagion from losses in subprime mortgages will reduce profits. In the UK BAE Systems Plc gained after the Times newspaper said the defence company may sign a £20 billion order.
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.