Financial news

The MSE Index closed practically flat yesterday at 3,344 points with just three equities registering price movements. Activity was relatively voluminous in the two largest banking equities while the fixed interest market was a flush with liquidity as investors jostled for the best possible yields.

Bank of Valletta was the day's most liquid and actively traded equity with a grand total of 58,400 shares, carrying a market consideration of €210,222, being exchanged across 22 transactions. All trades were struck within a tight trade range as the equity closed lower by the slimmest of margins at €3.599.

Activity in HSBC Bank Malta, the largest listed company on the Malta Stock Exchange, was particularly robust with 41,641 shares struck across 19 deals. Similarly to Bank of Valletta, the equity traded within a very tight range, however there was no change in its previous closing price of €2.925.

FIMBank recovered some of its lost ground as 16,000 shares were exchanged across six transactions.

The trade finance specialist gained 1.1 per cent to reclaim the $1.40 level.

A single transaction in Maltapost saw two investors swap 803 shares at the €0.75 level, which represents a 0c5 or 0.7 per cent premium to its previously traded price.

Elsewhere in the market, single deals in Grand Habour Marina and Go did not affect their previous closing prices of €2.00 and €1.90 respectively.

The bulk of the day's activity was in the fixed interest markets with trades being executed in seven corporate bonds and 10 government stocks.

With the exception of the fungible tranche of the 5.00% MGS 2021, all sovereign issues traded higher as the broker of the Central Bank lowered their yields in line with similar movements in European credit markets.

International market report - weekly round-up

Stock markets suffered steep declines this week as renewed fears of a prolonged global recession sparked a fresh bout of investor risk aversion despite a boost by the Chinese stimulus package announced earlier this week.

Wall Street stocks failed to cling onto the week's earlier gains after investors questioned China's package in averting a global slump. Hard hit construction stocks along with material and energy stocks recorded hefty gains initially but later in the week retreated, leading the S&P 500 index lower by 10.55 per cent to 852.30. The Dow Jones Industrial Average stood 9.37 per cent lower at 8,282.66 whereas the Nasdaq Composite Index was down by 10.85 per cent.

On the other side of the Atlantic, losses in the financial and commodity sectors undermined European stocks, with luxury goods groups also coming under pressure on concerns they would not be immune to a global economic slowdown. In Germany, the Xetra DAX lost 7.84 per cent to 4,761.58 and France's CAC 40 slipped 7.79 per cent. The FTSE 100 index also was a net looser this week as it shed 6.27 per cent to close at the 4,246.69 level.

Beijing's announcement of a $586 million economic stimulus plan aimed at stimulating its flagship economy by investing in infrastructure and social welfare projects led Asian stocks markets higher. However, the gain was short-lived as fears of a global recession returned to the fore with most Asian equity indices suffering steep losses. In fact, the Nikkei 225 Average in Tokyo fell 7.42 per cent while the Hang Seng index shed 3.50 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.