Local equities closed unchanged during yesterday's trading session at the Malta Stock Exchange with buyers and sellers agreeing to transact at prices which were established on Monday. Volumes picked up slightly and likewise, the number of trades. The MSE Index terminated at 4,894 points.
Bank of Valletta was the day's most liquid equity with a grand total of 33,253 shares, carrying a market consideration of Lm119,710 changing hands across three transactions. The bulk of the day's trading was struck as soon as the opening bell rung out, with subsequent trades accounting for lesser volume. The equity maintained its Lm3.60 level and at the end of the session, outstanding demand stood for 4,702 shares at Lm3.59,5 while best offers were for a further 375 shares at Lm3.60.
The day's activity in HSBC Bank Malta consisted of 15,088 shares which were traded across 13 transactions. The equity wobbled slightly in a very tight trade range but still closed unchanged at Lm1.92.
Elsewhere, two investors swapped 14,002 shares of FIMBank without affecting its previous trading price of $1.94. Similarly 2,400 shares of Simonds Farsons Cisk were transacted in a single deal at the Lm1.05 level. Farsons will be reporting its interim results for the period ended July 2007 on Wednesday, September 26.
All five trades in Maltacom, which saw 11,000 shares changing hands across five transactions, were struck at the Lm1.39 level and at the end of the session, bids were demanding shares at Lm1.38 while best supply remained firmly stuck at Lm1.39.
The fixed interest sector remained characterised by retail trade with activity being struck in two corporate bonds and five government stocks. The 6.45 per cent MGS 2014 was the sector's top gainer, with the price improving by 51 ticks to Lm110.53 as the bond realigned itself to the Central Bank's quoted bid price after a period of idleness.
UK banking stocks rebound
Yesterday, European equity markets struggled to make gains as sentiment remained fragile ahead of the meeting of the US Federal Reserve which was widely expected to produce a cut in US interest rates in response to ongoing turmoil in money markets. The FTSE Eurofirst 300 rose 0.1 per cent, while in Frankfurt, the German Xetra Dax fell 0.2 per cent and in Paris, the French CAC 40 added 0.1 per cent.
In London bank stocks made sharp gains as news that the UK government would underwrite deposits in crisis-hit Northern Rock steadied investors' nerves. Dealers also looked forward to the US Federal Reserve interest rate decision, which was due just after 1900 GMT. A cut in rates was seen as a near certainty, with the debate centering on whether the Fed would cut by 25 basis points or even 50bp. By late morning, the FTSE 100 was 0.5 per cent higher as other banks also made gains.
Tokyo shares dropped after banking stocks were hit by continued global credit worries and fallout from the bankruptcy of Credia, a Japanese consumer finance company. By the close the benchmark Nikkei 225 average was down two per cent, its biggest fall in a week. The broader Topix index was off 2.2 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.