Financial news
Index at two-month low
Declines in the second and third largest listed companies of the Malta Stock Exchange forced the Index to close the day, 0.7 per cent in negative territory down at 4,839 points. Activity remained relatively weak with long periods of inactivity, as investor apathy continued following 18 months of declines and sideway motion.
Bank of Valletta closed the day in negative territory as 3,160 shares were swapped across nine transactions. Initially, the equity held at the Lm3.60 level but surrendered 1c or 0.28 per cent in final minutes of the session. The Bank will report its full year results and a final dividend towards the end of the current month.
Two trades were executed in FIMBank shares, the trade finance specialist who is expected to announce a rights issue by the end of the current year. The sole dollar denominated equity, shed 0.51 per cent to close back at the $1.94 level.
Strong selling activity in International Hotel Investments saw 47,500 shares being exchanged across five transactions. This brought a 4.11 per cent decline to the price of the hotel operator, which closed yesterday's session at €1.05, its lowest level since mid August. Investors are still expecting the company to announce the acquisition of one or more hotels, thereby making use of some of their accumulated cash positions.
Elsewhere in the market, activity was tranquil with buyers and sellers agreeing that Wednesday's closing prices offered the right level of valuation for the shares of HSBC Bank Malta and Simonds Farsons Cisk..
Fixed income investors are currently gearing up for three new issues which are expected to hit the primary market in the coming days - a new corporate issue by Pavi Shopping Complex and two fungible issues of stocks by the Malta government.
European bank stocks in positive territory
European bank stocks rose for a fourth day as investors speculated the worst of the credit turmoil is over. BNP Paribas SA and Royal Bank of Scotland Group Plc gained. BHP Billiton Ltd. and Rio Tinto Group led declines by mining companies as copper prices dropped. National benchmarks advanced in nine of the 18 western European markets. The European Central Bank has left its main interest rate unchanged at 4 per cent, amid uncertainty about the impact of the global credit squeeze on the eurozone economy.
Financial stocks powered the FTSE to a new eleven-week high. The decision by the Bank of England monetary policy committee to keep interest rates on hold at 5.75 per cent was expected, and so market reaction was muted.
Japan's Nikkei share average retreated from a nine-week high set a day earlier, hit by declines in technology and retail stocks. The benchmark index lost 0.6 per cent to close at 17,092.49 while the broader Topix index fell 0.5 per cent to 1,655.60.
US stock-index futures rose as investors speculated employment reports today and tomorrow will show the housing slump is not derailing the economic expansion.
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.