Financial news

In a relatively muted session yesterday at the Malta Stock Exchange, the MSE Index registered its first gain for the week, rising seven points to close at 4,166. Six equities were active throughout the session with an aggregate value of €40,869 spread over 11 deals.

A single trade in Grand Harbour Marina for just 850 shares at €2.25 translated in a jump of 7.14 per cent over its previous level which equates to a market capitalisation of €22.5 million.

Demand for Simonds Farsons Cisk amounted to 2,135 shares which were purchased across a single transaction at the €2.83 level. This represents a 3c or 1.1 per cent premium to its previous closing level, bringing the equity within a whisker of its all time high of €2.94 touched on January 31, 2000. Buying interest in Simonds Farsons Cisk has been sustained since the board of directors revalued the company's property portfolio with the eventual aim of spinning off a property holding company.

Trading activity in HSBC Bank Malta consisted of two transactions for 1,800 shares with an increase of 0.26 per cent to close at the €3.80 level.

Malta Internatinonal Airport suffered the slimmest of declines as 7,562 shares were sold across four transactions down to the €3.061 level. This selling activity came ahead of the company's interim results for the period ending June 30, this year which were due to be published after the session's close. At the end of the day 2,688 shares were best bid at €3.061 against a supply of 1,100 shares at €3.12.

The share price of International Hotel Investments closed unchanged when 500 shares were swapped over two trades at €1.049.

Maltapost attracted a turnover for 3,000 shares carrying a total consideration of €2,400 with both the buyer and seller agreeing that the €0.80 level provided an appropriate valutation for the postal services provider.

International market report - weekly round-up

Relentless worries about the health of the global financial sector made for another extremely nervous market during the week.

In the US, markets suffered from another wobbly week with the failure of IndyMac Bancorp leading US regional banks markedly lower. Renewed concern regarding the GSEs (Government Sponsored Enterprises) Fannie Mae and Freddie Mac, which together own or guarantee half of the $12,000 billion of outstanding US home loans continued to keep markets under pressure. Besides, US government rescue plan for the two mortgage agencies, failed to alleviate fears about the wider financial sector. However, over the weekend markets gradually shifted its focus from Fannie & Freedie on the premise that GSE debt was safe. On the other hand, unexpected positive results from Wells Fargo & Co relieved worries about a credit crisis spiraling out of control leading the three major US stock indices higher.

In the European continent stocks markets put in mixed performances, initially recording stronger performance after bid news raised hopes that takeover deals will help ease the pain in the embattled financial sector. In particular, Banco Santander made an all paper bid for the troubled UK mortgage lender Alliance & Leicester. Optimism in the European markets was soon shot down as evidence of slowing consumer spending hit the continent's retailers and fears mounted that stagflation would further dampen growth. Frankfurt's Xetra Dax was lower by 3.62 per cent while the CAC 40 dipped by 5.24 per cent.The worst performance was posted in by the FTSE 100 which lost 6.85 per cent over the week.

Asian markets were less upbeat that the US though both the Nikkei 225 Average in Tokyo and the Hang Seng in Hong Kong edged lower.

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.