Financial sector equities dragged the market lower during yesterday's trading session at the Malta Stock Exchange. Nevertheless, strong gains were registered by the smaller capitalised companies as during the day, investors shifted their focus away from the heavy weights to the more specialised equities.
Malta International Airport was the day's worst performer, as a lack of higher bids in the market forced the hand of a retail investor who wished to sell the equity. In fact the day's turnover amounted to 2,771 shares which were sold in rapid succession across two transactions, just five minutes before the session's closing bell, thereby forcing a 5c or 3.57 per cent decline on its share price which terminated at the Lm1.35 level.
A similar percentage drop was registered by Lombard Bank where 100 shares were sold across a single deal at Lm4.80, which represents a 17c5 discount to its previous traded price. Bank of Valletta shed 2c to Lm3.62, while HSBC Bank Malta dropped 1c5 to Lm1.91 during yesterday's session. In both equities, the number of shares transacted was slightly more than 8,000.
Plaza Centres jumped 3c or 4.23 per cent to claim the day's top spot on strong demand which saw 30,000 shares being traded across three transactions at 74c, terminating the session at three-and-a-half-year high.
Demand for Maltacom cleared all supply at the Lm1.42 level as 5,130 shares changed hands across four transactions. A further 870 shares remained unsatisfied at the price against supply for 2,000 shares which are best offered at Lm1.43,4.
SanTumas Shareholdings, the closed ended collective investment scheme, rallied 9c9 or 8.6 per cent on a single transaction of 550 shares which was executed at the Lm1.25 level, its highest price since the scheme listed on the Exchange in December 2003.
The MSE Index closed the day 0.35 per cent lower at 4,897 points.
Global stocks positive
Stocks in Europe and Asia advanced on speculation the Federal Reserve will lower interest rates next week to spur expansion in the world's biggest economy. US stock-index futures rose. National benchmarks rose in all of the 17 western European markets that were open. The UK's FTSE 100 and France's CAC 40 advanced 1.2 per cent. Germany's DAX increased 0.9 per cent.
London equities made strong gains in opening trade, lifted by improving sentiment in the banking sector and a strong showing for resource stocks. The leaderboard was dominated by financial stocks, which started to recover from the steep, two-session falls prompted by fears of a US recession sparked by Friday's weak employment report. Mid-cap investment stocks also began to recover, helping the FTSE 250 to a 0.8 per cent rise.
Japanese large and mid-cap stocks gained ground thanks to some strong figures on the domestic economic front. Figures showing that core private-sector machinery orders unexpectedly jumped 17 per cent in July from the previous month helped calm nerves jangled by Monday's news of the fastest fall in Japan's economic output in four years. The Nikkei 225 advanced 0.7 per cent while the Topix was up 0.5 per cent.
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.