Financial news

In a rather bland session at the Malta Stock Exchange yesterday, the MSE Index slid a hefty 1.4 per cent to close at 4,368 points. The two largest banking sector components were the main drag on the index following a continued trend of selling activity. Activity was spread over only four equities with an aggregate value of €133,079 reached over 42 deals.

HSBC Bank Malta was the day's most liquid and actively traded equity with a grand total of 25,778 shares changing hands across 31 transactions. The equity was active from a few moments after the opening bell right up to the close of the session.

After closing at the €4.10 level during the previous session, the share opened 5c lower, and continued selling activity pushed the price lower to close at €3.95, which translates into a drop of 3.6 per cent. This is the lowest for the equity since the start of the year.

Bank of Valletta suffered a similar fate, though volumes were markedly lower. Trading started well into the session at a tick lower than the previous closing price, only to continue trading at the €5 level. A small transaction of a mere 38 shares in the dying minutes of the session sent the price tumbling down by a further five cents, thereby closing at €4.95 or two per cent lower. Total turnover consisted of 1,633 shares dealt over six trades.

Trading activity in International Hotel Investments pushed the price higher by 1c5 or 1.4 per cent to close at €1.085. Turnover here consisted of 10,000 shares and was spread over two deals.

Go's share price closed unchanged when 3,875 shares were swapped over three trades at €2.90.

Weekly international equity market review

Wall Street stocks posted healthy gains as crude oil prices retreated, pushing stock prices higher across the board during the week. Meanwhile, reassurance by the world's largest bond insurer MBIA on capital availability, after reporting a $2.4 billion loss, drove the S&P 500 index higher by 1.16 per cent despite new disclosure requirements for investment banks and American International Group's announcement of a $12.5 billion capital requirement. Pressure on financials was a disturbance on the Dow Jones Industrial Average, nevertheless the index jumped by a marginal 0.66 per cent to 12,898.39. The Nasdaq Composite was up by 2.39 per cent to close at the 2,496.70 level. In Europe, dark clouds over the financial sector overshadowed gains by commodities and fertiliser stocks, leaving European stocks weaker. The blue chip FTSE 100 index had an overall negative week, retreating by 0.72 per cent to 6,216.00. French group, Credit Agricole led the European banks lower after it said it was considering a €5.9 billion rights issue. This had a bearing on the CAC-40 in Paris where it lost 0.40 per cent to 5,055.24. Elsewhere Frankfurt's Xetra Dax 30 gained 0.10 per cent.

In Asia, banking stocks were lifted by Westpac's merger announcement with St George Bank. The Nikkei Stock jumped by 2.21 per cent to 14,251.74 led by Sony Corporation and Canon Inc. on softer yen, while the Shanghai Composite index closed the week higher at the 25,513.71 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.