Soft selling activity during yesterday's trading session on the Malta Stock Exchange brought a 0.3 per cent drop in the Index which closed at the 4,470 mark, its lowest reading since November 2005.
Heavyweight banking sector stocks were the main culprits behind the ongoing slump in the market as the international credit crunch continued to unravel nerves and sentiment even in Malta, notwithstanding local financial institutions have no direct exposure to the US sub-prime mortgages and leveraged debt securities.
HSBC Bank Malta was the day's biggest decliner as 3,810 shares were swapped across six transactions. Investors waited till late in the session for higher bids to come to the market however, with 20 minutes of trading remaining sale orders were executed down to the €4.15 level. This represents a 3c or 0.7 per cent discount to its previous closing price and marks its lowest level in 30 months. At the end of the session, the best demand stood for just 250 shares at €4.001, while 1,190 shares remained outstanding on the offer side at €4.15.
Bank of Valletta was the day's most actively traded equity with 6,208 shares, carrying a market consideration of €31,474 being exchanged across 12 transactions. The equity closed the day weaker by 0c4 at €5.07.
FIMBank gave back Wednesday's gains as 1,102 shares were swapped across a single transaction at the $1.908 level, while 2,000 shares of Lombard Bank Malta were swapped across two transactions leaving its previous closing price of €3.249 unaltered.
A single transaction for 2,400 shares brought the slimmest decline to Malta International Airport which terminated the session at €3.349, leaving demand for 1,500 shares best bid at €3.098 and 6,800 shares best offered at €3.35.
Elsewhere in the market 8,000 shares of Maltapost were transacted at the €0.80 level.
Weekly international equity market review
Wall Street stocks powered ahead, breaking a three-day losing streak after a rally in technology and financial stocks upped buying interest. The benchmark S&P 500 index was up by 0.12 per cent to 1,392.57 points. The Nasdaq Composite hardly budged all the weak rising slightly by 0.51 per cent to close at the 2,438.49 level. Meanwhile, disappointing results from ExxonMobil, a leading oil company, together with weak employment data weighted on the market leading the Dow Jones Industrial Average lower by 0.14 per cent over the past week.
European equity markets commenced the week on a negative note dragged lower by banks and insurers after UBS posted a large first quarter loss while Swiss Re announced another round of write downs. However, this was short-lived with European shares notching up to their highest close since mid-January, cheered by a broad pick up in risk appetite. The blue chip FTSE 100 index had a positive week rallying by 2.82 per cent to 6,261.00. The CAC-40 in Paris gained 1.97 per cent to 5,075.31 while Frankfurt's Xetra Dax 30 gained 2.77 per cent.
Japanese stocks had an initial negative impact as the Bank of Japan cut its annual economic growth outlook, putting the brakes on a recent rally in banking stocks. Nevertheless, gains for resources stocks over a rally in oil and gold prices limited losses on the Nikkei Stock average where it has risen by a marginal 0.67 per cent. The Shanghai Composite index closed the week lower at the 25,444.17 level.
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.