Financial news

During a relatively active session at the Malta Stock Exchange yesterday, the MSE Index continued its decline, falling by 0.7 per cent to close at 4,304 points. Eight equities were active throughout the session with an aggregate value of €114,483 of euro denominated equities and $73,456 in FIMBank, the only US dollar denominated share on the local exchange.

A sole trade of 200 shares in Lombard Bank executed towards the close of trading, lowered the price to the €3 level, which equates to a 12c7 or four per cent drop from the previous closing price.

Bank of Valletta was the day's most actively traded equity with a total of 8,991 shares changing hands across 15 transactions. After closing at the €4.95 level during the previous session, the share first traded at this price only to succumb to selling activity which pushed the price lower to close at €4.89, which translates into a drop of 1.21 per cent. This is the new low for the year.

HSBC Bank Malta suffered a similar fate, with comparable volumes. Trading started at the opening bell at the previous closing price of €3.88, only to drop by 3c a couple of minutes later. Trading in the last half hour resulted in the price declining further to close at €3.84. Total turnover consisted of 8,666 shares dealt over 12 trades.

Go's share price dropped by 1c5 when 6,700 shares were swapped over four trades at €2.884. FIMBank registered the only positive close of the day, with the price moving higher by 0.4 per cent. The equity was the most liquid of the session with 38,931 shares being exchanged over seven deals, thereby closing at $1.88,8.

Trading activity in Maltapost did not have an effect on the price. As expected the company issued its interim financial statements for the period ended March 31, wherein it registered a gross profit of €2.6 million which represents an increase of 157 per cent over the six months ended March 31, 2007.

Interest in Simonds Farsons Cisk and Crimsonwing failed to see the respective closing prices of €2.71 and €0.54 being changed.

Weekly international equity market review

Wall Street stocks were knocked off four-month highs after a rise in core inflation and record high oil prices threatened to trim corporate profits while a leading banking analyst said the credit crisis could extend well beyond next year. Strong producer price data weighted on Wall Street, with banks hit by earnings concern and insurer American International Group down after it said it would raise more capital than originally indicated. The benchmark S&P index and the Dow Jones Industrial Average slipped by 1.27 per cent and 2.30 per cent respectively while the Nasdaq Composite lost 1.94 per cent settling at 2,448.27 points.

European Stocks started the week on a positive note led by commodity and drug stocks along with surprisingly strong economic growth data, offsetting the impact of concerns over more rights issues in the banking sector. By the middle of the week stocks relinquished much of their gains as oil prices soared to fresh records heightening inflation fears and concerns for corporate earnings. The major European indices ended lower with the blue chip FTSE 100 index shedding 0.29 per cent to the 6,198.10 level. Meanwhile, Germany's Xetra Dax lost 0.60 per cent while CAC 40 eased by 0.55 per cent to 5,027.55 points.

A six-day rally for Asian stock markets came to an end with the Hang Seng Index closing lower at 25,043.12 after shedding 1.84 per cent over last week. Meanwhile, Japan's Nikkei Stock Average commenced the week higher led by Mitsubishi Corporation along with other energy related shares. This gain was forfeited later on the week as the index was dragged lower by 1.92 per cent after investors locked in profits on property firms.

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.