Financial news

A muted session at the Malta Stock Exchange yesterday saw sluggish volumes across the seven listings trading on the day as selling pressures in three equities caused a further reduction of 0.6 per cent for a reading of 4,197 points. The day's turnover consisted of a total value of €35,117 traded over a total number of 14 deals.

A trade of 500 shares in Go was executed in the dying minutes of the session at €2.50 which represents a 5c or 1.96 per cent drop from its previous trading level.

International Hotel Investments suffered a similar fate, though over a higher volume of 9,000 shares dealt at €1.05, signalling a loss of 1.87 per cent.

Bank of Valletta's activity was made up of a single deal of 250 shares which sent the equity lower by 0.61 per cent to close at €4.87.

Crimsonwing was the only positive performer as the equity gained 1.89 per cent, with 1,350 shares swapped over two transactions, with the equity closing at €0.54.

All deals in Malta International Airport were executed in rapid succession at the start of trading, seeing the price remain unchanged at €3.11.

Having traded momentarily slightly lower HSBC Bank Malta closed unaffected by the execution of three deals totaling 776 shares.

Lombard Bank's share price closed unaltered when 500 shares were exchanged between two investors at €2.97.

In the fixed interest sector of the market, activity was spread across a corporate bond and seven government stocks with the five per cent MGS 2021 attracting the highest turnover with over five million nominal being swapped over three transactions to close at €96.40, while the 7.5 per cent MGS 2011 registered a decrease of 3.07 per cent over a low volume of 1,165 nominal.

International market report - weekly round-up

Global equity markets were engulfed by a wave of selling sending indices on both sides of the Atlantic to a multi-year low as the bruising second quarter came to an end.

US equity markets began the third quarter in a downbeat fashion. The relentless rise in oil prices has been the scourge of stock markets this month, undercutting investor confidence with the threat of inflation and earnings downgrades in the banking sector turning modest gains in April and May into significant losses in June. Poor corporate earnings and more bad news from the banking sector sent the Dow Jones industrial average scuttling to its lowest level since September 2006. New York stock bounced back modestly boosted by energy stocks despite being too little to prevent the S&P 500 Index from registering its worst month since September 2002.

The Nasdaq Composite suffered the largest hit over the week shedding 6.24 per cent.

European equity markets plunged to their lowest level in more than two years as banks were hit by news that Fortis Bank was to shore up its finances with additional calls for cash from shareholders.

UBS was also a drag on the European banking sector following further turmoil at Europe's biggest casualty of the US subprime crisis. All major European indices closed lower with the FTSE 100 shedding 4.23 per cent. Germany's Xetra Dax lost 4.72 per cent while the French CAC 40 was down by 5.29 per cent.

Asian markets were mainly lower and closed a torrid first half in downbeat mood with Chinese shares dipping to a 16-month closing low. The Nikkei lost 4.03 per cent to close at the 13,265.40 level while the Hang Seng Index lost 5.82 per cent on the previous week's closing.

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.