Financial news

Local equities commenced a fresh week on a positive footing during yesterday's trading session at the Malta Stock Exchange with the larger banking equities providing most of the lift, even though gains were somewhat limited. Trading volumes were however weak with investors seemingly adopting a cautious wait-and-see attitude as banking sector equities unravel across Europe.

HSBC Bank Malta was the day's top gainer as the equity pulled back from its recent slump regaining 1c9 or a full percentage point as 6,185 shares were swapped across eight transactions, helping the price recover to the Lm1.92 level. At the end of the session, a further 5,857 shares remained outstanding at this level against demand for 2,000 shares best bid at Lm1.91.

Bank of Valletta reclaimed the Lm3.60 level as 5,035 shares were purchased across eight trades. Trading was confined to a very thin range terminating the day 0.14 per cent higher than Friday's closing level.

On the contrary Lombard Bank was the day's worst performer, with the equity shedding 4c9 or 1.02 per cent as a lone trade for just eight shares was executed at the Lm4.75 level.

Maltacom shares closed the day in negative territory as well, with the equity dropping a penny or 0.7 per cent to the Lm1.39 level. The day's turnover consisted of 4,893 shares which were struck across five transactions, leaving 200 shares best bid at Lm1.38 against supply of a further 1,000 shares at Lm1.39.

Elsewhere in the market, Middlesea Insurance closed the day unchanged at Lm1.68. Similarly, Malta International Airport did not register an alteration in price as 2,380 shares changed hands at the Lm1.40 level.

The MSE Index closed 0.29 per cent higher at 4,894 points.

Global stocks lower

Yesterday, European equity markets retreated in morning trade as concerns about the ongoing crisis in money markets dragged banking stocks lower. The FTSE Eurofirst 300 fell 1.5 per cent, while in Frankfurt, the German Xetra Dax sagged 0.7 per cent and in Paris, the French CAC 40 dropped 1.5 per cent.

In London, the FTSE 100 fell sharply as the fall-out from the rescue of Northern Rock continued to hit the markets. Other lenders also suffered from the growing crisis of confidence, fuelled by comments from Alan Greenspan, former chairman of the Federal Reserve, that US house prices were likely to fall "significantly". In London, Northern Rock lost a further third of its value as savers scrambled to withdraw deposits from the bank, with an estimated £2 billion withdrawn in just three days. With the rest of the banking sector also down sharply, the FTSE 100 fell two per cent.

Asian stocks dropped for the first time in five days after the US Justice Department began investigating makers of flash-memory chips and falling crude prices drove down oil producers.

US stock-index futures declined. Microsoft Corp. dropped in Europe after the world's largest software maker lost its appeal of an antitrust ruling, forcing the company to pay a record fine.

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.