Financial news
Market drifts gently lower
Yesterday's trading session at the Malta Stock Exchange was a lacklustre one, with soft activity and declines in the major listed equities forcing the Index to close the day 0.1 per cent lower at 4,914 points.
HSBC Bank Malta was the day's top laggard even though the equity only lost 0.2 per cent of its value, on turnover which barely eclipsed Lm8,941 worth. In fact, the day's activity consisted of 4,650 shares which changed hands across four transactions squeezing the price lower by four-tenths of a cent to terminate the day at Lm1.92,5.
Bank of Valletta shares lost almost the same amount in percentage terms to close at Lm3.62,2 as 3,533 shares were sold across seven transactions. At the end of the session 4,000 shares were best bid at Lm3.62,1 while supply was for 2,820 shares offered at Lm3.62,9. International Hotel Investments was the day's only gainer, as well as the most liquid and actively traded equity on the exchange. In fact a grand total of 50,527 shares were swapped across nine deals, thereby helping the equity reclaim the €1.10 level.
Elsewhere in the market, activity in Malta International Airport remained relatively sustained with 11,000 shares being purchased over six trades. This activity cleared all supply at the Lm1.40 level leaving, at the end of the session, offers for 4,480 shares at the Lm1.42 level.
Trading in sovereign paper was mainly driven by retail investors as indicated by the relatively low clip sizes of the executed trades. Yields dropped across the whole curve as the stockbroker of the Central Bank of Malta increased its bid prices for Government Stocks to maintain an adequate premium over their European counterparts.
European stocks negative
Yesterday, European stock markets lost ground as fears of a slowdown in the US economy continued to worry investors. News of unexpected weakness in the US jobs market led to Friday's two per cent slump on Wall Street. Investor sentiment in Europe also remained cautious, with the FTSE EuroFirst 300 down 0.1 per cent, to 1,492.6.
London equities were flat at midday, with investors eyeing the opening on Wall Street later in the session for clues about market sentiment in the US. The FTSE 100 gained 0.06 per cent in cautious trade. Mid-cap investment companies sustained their recovery and pulled the FTSE 250 higher, gaining 0.02 per cent.
Asian stocks recovered after initial sharp falls on the back of Friday's poor US jobs data and news that Japan's economy contracted more than expected in the second quarter. The Japanese stock market fared worse than most, failing to trim morning losses. Japan's Nikkei share index sank 2.2 per cent. The broader Topix declined 2 per cent.
US stock-index futures fell on concern that global growth is slowing after Japan's economy shrank more than forecast.
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.