The first trading session of the week brought further misery to the two largest listed equities which declined slightly in value thereby pulling the MSE Index into negative territory by 0.22 per cent to close at 4,827 points.
Bank of Valletta suffered the day's biggest decline even though in perspective that amounted to just 0.56 per cent as 2c was chopped off its previous closing price. The day's activity amounted to 6,863 shares which were swapped across nine deals, squeezing the price down to Lm3.58c.
At the end of the session, a further 6,232 shares remained unsatisfied on the bid side at the said level, against a supply for 14,634 shares best offered at the Lm3.60 level. Bank of Valletta's full year results are due to be published within a few weeks time.
Activity in HSBC Bank Malta was uncharacteristically weak with barely 4,225 shares changing hands across eight transactions. The equity traded within a tight range closing the session at the day's low of Lm1.89,5.
Buying activity in FIMBank sustained the price at the $1.95 level, while single deals executed in Malta International Airport and Simonds Farsons Cisk did not affect their previous closing prices of Lm1.35 and Lm1.07 respectively.
Contrary to the equity market, the fixed income sector of the exchange was a hive of activity with trading spread across six corporate bonds and eleven government stocks. Investors, both retail and institutional, were busy transacting stocks ahead of Tuesday's session, where by the end of which, the treasury department will be pricing two new fungible tranches of government stocks for an aggregate maximum total sum of Lm50 million.
Asian stocks reach record high
Yesterday, European equities were a little lower as German software maker SAP fell heavily in the wake of a profit warning from its US merger target Business Objects. By lunchtime, the FTSE Eurofirst 300 traded 0.1 per cent lower while Frankfurt's Xetra Dax dipped 0.2 per cent and the CAC 40 in Paris fell 0.2 per cent.
In London Northern Rock shares gained amid reports of a potential financing package from Citi. Reports that the largest US bank was considering offering a $10bn credit line sent the stricken mortgage bank 10 per cent higher to 173.7p. Overall, the FTSE 100 was down 10 points while the mid-cap FTSE 250 was 8 points higher.
Asian stocks outside of Japan hit a lifetime high, but the dollar headed lower after a solid US jobs report failed to dent expectations for another cut in U.S. interest rates.
On Friday, the dollar rose sharply and US stocks gained after data showed September US jobs growth of 110,000, the highest since May. August's jobs fall was reversed to a gain and July's numbers were revised up. But the dollar was pressured again yesterday as analysts concluded the US jobs market was still weakening and the Fed Reserve could cut rates again before year-end.
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.