Financial news

The MSE Index lost 0.47 per cent to close at 4,172 points during yesterday's trading session at the Malta Stock Exchange. This drop was fuelled by negative showings in three of the index components. On the other hand, Maltapost provided the only positive sentiment during the session. Activity was spread over eleven components, with a total of 42 trades being executed, amounting to an aggregate value of €317,720 of Euro denominated equities and $323,812 in the only US dollar denominated share on the local exchange.

A sole trade of 2,089 shares executed towards the end of the session in Maltapost caused the equity to raise to €0.78 which represents an increase of 3.86 per cent. At this price level the company's market capitalisation stood at €21.8 million.

Following a week's absence, GlobalCapital returned to the board with two trades consisting of a turnover of 2,000 shares being exchanged at the price of €2.75. This corresponds to a decline of a full 10 cents or 3.51 per cent, the biggest drop of the day. Selling pressures continued to weigh on HSBC Bank Malta, with trades executed at the opening bell being dealt at one tick lower than its previous closing price. The next trades were struck a few minutes before closing, with the equity trading down to the €3.75 level, which works out to a 1.32 per cent drop. Turnover here consisted of 12,034 shares transacted over 11 deals.

A low volume of 750 shares was traded in Go. This activity saw the price trade slightly down by 0.2 per cent to €2.695.

FIMBank traded unchanged at $1.889 with a total turnover of 171,420 shares, while possible institutional buying activity in Middlesea Insurance continued with 50,000 shares being swapped over five deals at €3.41.

Bank of Valletta saw the price trading at a daily high of €4.61, only to lose this gain and close the session unchanged at €4.60.

Interest in International Hotel Investments and Malta International Airport failed to move the price, thereby closing at €1.073 and €3.12 respectively.

The day's activity also consisted of transactions in Simonds Farsons Cisk and Plaza Centres which traded at their previous price levels with a turnover of 1,000 and 15,908 shares respectively.

Weekly international equity market review

Equity markets sold off across the board after Lehman Brothers and a number of banks were downgraded or placed on negative outlook by credit ratings agency Standard & Poor's.

Wall Street stocks extended their losses, with financial stocks being the sharpest drag as fears grew that another round of cash calls in the sector may fall flat. Despite this there was some positive news to soothe investors, albeit not sufficient to shore up some of the main US stock indices. Oil slipped back and the dollar strengthened after comments by Ben Bernanke, chairman of the Federal Reserve on inflation and foreign exchange. Some positive macroeconomic data also buoyed sentiment. The benchmark S&P index was 0.98 per cent lower for the week while the Dow Jones Industrial Average fell by 1.62 per cent to the 12,390.48 level. The Nasdaq Composite index was the only weekly gainer with an increase of 0.66 per cent.

On the European continent, the Banking sector petered out previous gains by oil and energy stocks after British mortgage lender Bradford & Bingley reignited fears about the impact of the credit crunch on the broader economy. The FTSE 100 index lost 1.64 per cent. German and French stocks indices extended their previous week's losses with Germany's Xetra Dax shedding 0.97 per cent while the CAC 40 easing by 1.13 per cent.

Tokyo outperformed as the weaker tone of the yen boosted export-oriented sectors leading the Nikkei 225 Index 1.53 per cent higher. Banking stocks fell sharply across Asia dragging the Hang Seng Index by a marginal 0.35 per cent.

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.