Financial news

It was a muted session at the Malta Stock Exchange yesterday with just three equities registering trades. A lack of price movements meant that the MSE Index closed unchanged at yesterday's reading of 3,353 points. Activity was spread across seven equity trades for a total market consideration just shy of €35,000.

HSBC Bank Malta commenced trading as soon as the market opened and by the end of the session a total of 10,826 shares were exchanged, making it the day's most active equity. The price fluctuated within a tight trade range. The banking equity traded at an intra-day high of €2.89 to eventually settle at an unchanged closing price of €2.88.

A sole trade for 1,350 shares in FIMBank failed to change the price of the trade finance specialist, which remained stuck at $1.45, its lowest level for the year.

Similarly, Lombard Bank Malta was also a non-mover for the session, closing at €2.948 as two investors swapped a mere 375 shares over a single transaction.

As from yesterday's session, Bank of Valletta commenced trading without the attached right to receive a gross final dividend of 6c75. No deals were however struck in the equity during the session with the best bid for 5,180 shares awaiting to purchase shares at the €3.403 level while supply of 5,000 shares were offered at €3.52.

In the fixed interest sector of the market, activity was spread across five corporate bonds and six government stocks. The 5.4% MGS 2010 (IV) attracted the highest turnover, with 575,000 nominal, as it closed slightly down at €102.33, while another high volume trade of 300,000 nominal were traded in the 5.9% MGS 2009 all done at €101.80. The largest decline in the local bond market was registered in the 6.6% MGS 2019 when 9,000 nominal were swapped at a price of €114.75, down 1.60 per cent. All deals were struck prior to the European Central Bank's decision to cut its benchmark interest rates by 50 basis points to 3.25 per cent.

International market report - weekly round-up

Global risk appetite continued to show signs of improvement as investors anticipated further central bank interest rate cuts and awaited the result of the US Presidential election, widely expected to be a victory for Barack Obama, the democratic nominee.

In the US, calmer conditions prevailed in financial markets as worrying evidence of the slowdown in the global economy was offset by the Federal Reserve interest rate cut of 50 basis points, which is likely to be followed by other central banks. Traders took also comfort from further signs of easing in money markets.

The benchmark S&P 500 index was up by 2.44 per cent at 952.77, the Dow Jones Industrial Average gained 1.65 per cent and the technology heavy Nasdaq Composite index 1.47 per cent higher at 1,681.64.

Across the Atlantic, European markets enjoyed a strong rally this week as alternative energy stocks were in the vanguard of an increase this week. Strength in the mining sector, banks and financials led the FTSE 100 higher by 6.79 per cent to reach the 4,530.73 level. In Frankfurt, Germany's Xetra Dax jumped 7.45 per cent to 5,166.87 while in France the CAC 40 rose 6.33 per cent.

In Asia, banks led the markets higher at the beginning of the week on reports China's central bank had eased lending restrictions.

However, the gain was lost yesterday as exporters were hit by a stronger yen amid fears for the global economy.

In fact, the Nikkei 225 shed 1.45 per cent while the Hang Seng Index closed 4.39 per cent lower on the previous week.

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.