Financial news

During yesterday's trading session at the Malta Stock Exchange, most equities closed the day on a positive note as fresh funds poured into the market. A decline in the largest capitalised company did not drag the MSE Index into negative territory, which then closed higher by 0.4 per cent at 4,669 points.

In anticipation of their full year results, Malta International Airport gained 3c1 or 1.0 per cent as investors purchased 5,352 shares across four transactions, thereby helping the equity close at €3.261, its highest level since early January 2008.

Strong buying activity in International Hotel Investments saw investors clear 201,921 shares from the offer side across 16 transactions and pushing the price higher by 3c4 to close the session at €1.035.

FIMBank equally attracted a fairly large amount of shares with 190,967 shares being purchased across 31 transactions. The bulk of the day's trades were executed at $1.999 with the price moving higher towards the end of the session to finally settle for a 1.1 per cent gain at $2.02.

Bank of Valletta closed yesterday's session on a positive footing moving higher by 0.2 per cent as a mere 3,500 shares were purchased across six transactions. The equity terminated at the €5.819 level leaving a further 2,355 shares unfilled on the offer side against demand for 1,769 shares at €5.79 level.

HSBC Bank Malta was the only equity to terminate the session in negative territory. The day's activity consisted of 11,400 shares which were sold across 14 transactions, squeezing the price lower by 3c or 0.7 per cent to close at the €4.38 level.

Elsewhere in the market a singe transaction for 1,500 shares in Go did not alter its previous closing price of €3.14.

International market report - weekly round-up

The gloom in global equity markets deepened with all global indices giving back gains made during the previous week.

From the United States the warnings made by Ben Bernanke regarding US house prices and the likely increase in mortgage delinquencies sparked a renewed sell-off in the financial sector, losing all gains made since the interest rate cut back in January. The benchmark S&P index fell by 3.36 per cent while the Dow Jones Industrial average was 3.46 per cent lower than the previous week. The Nasdaq Composite followed through with a reduction of 3.44 per cent to 2,272.81 points.

Within the European continent, worrying economic data fuelled fears of slowing growth and rising inflation in the region. Economic growth during the final quarter of 2007 nearly halved as exports and consumer spending declined. Carmakers and technology stocks were the most hit amid a worsening outlook for the sectors. The FTSE 100 drifted by 3.67 per cent to 5,853.50 points. Germany's Xetra Dax was down by 4.49 per cent while the CAC-40 in Paris declined by 2.08 per cent.

Japanese stocks were broadly lower with the Nikkei 225 index dipping by 5.10 per cent while Honk Kong's Hang Seng Index dropped by 5.08 per cent. The trend was led by increased uncertainty over poor US economic reports which sparked a reversal in sentiment across the region.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.