Financial news

Trading activity remained mainly concentrated in the fixed interest sector of the market during yesterday's session at the Malta Stock Exchange, although the main Index inched up by 10 points to close at the 4,847 mark, thanks to slim gains in two equities.

Simonds Farsons Cisk was the day's top gainer as a grand total of 10,000 shares were swapped across two transactions at Lm1.08, which represents a 1c or 0.9 per cent premium to its previously closing price as well as its highest level since May 2005. The equity has been on a constant rally for 12 months with investors confident that the capital investment undertaken at the moment, will see the beverages company in a prime position to face full liberalisation of the current packaging restrictions as from January 1, 2008.

Soft buying activity in HSBC Bank Malta helped the equity reclaim the highest level of the month. In fact, the day's trading consisted of merely 2,740 shares which were struck across 5 deals, thereby pushing the equity higher by 1c or 0.5 per cent to Lm1.91.

At the end of the session, a further 2,151 shares remained unsatisfied on the offer side at this level, whilst supply was at Lm1.90 with bids totalling 2,800 shares.

All offers of Plaza Centres at the Lm0.74c level were cleared yesterday as 600 shares were collected off the supply side in a single deal.

Elsewhere, Bank of Valletta and Maltacom terminated the session unchanged at Lm3.59,9 and Lm1.38,7 on purchases of 4,270 shares and 2,000 shares respectively.

Indices close to record highs

International equities maintained on last week's positive trend, as a number of international indices traded at record highs, with Asian markets relatively outperforming the European and American counterparts.

European markets extended their gains as both the European Central Bank and the Bank of England kept their respective interest rates on hold on October 4. European stocks closed at a 10-week high on Friday, as stronger than expected US employment data soothed worries over the outlook for the world's biggest economy. Mining shares were amongst the biggest gainers, helped by rising metal prices and an upbeat brokerage note on the sector. Meanwhile, the banking sector kept on gaining ground after last months' concerns on the liquidity crunch.

The solid US employment report published on October 5, obviously boded well for the American major indices, as they geared up for the kick off of the third quarter reporting season. The Dow Jones Industrial Average and the S&P 500 surged to an all-time intraday high on October 5.

Japanese stocks hit their highest point in almost nine week on Wednesday, with Fast Retailing Co. Ltd and other retail shares climbing as investors shifted money to domestic reliant sectors from exporters on concerns about US personal consumption.

This article was compiled by Bank of Valletta plc, which is licensed to conduct investment services business by the MFSA. Bonds and shares may be purchased and sold from any BOV branch. Further details may be obtained by contacting us on tel.: 21312020 or email: customercare@bov.com