Financial news

The MSE Index increased by a slight margin of 0.05 per cent to close 3,308 points during yesterday's trading session at the Malta Stock Exchange. Activity in the equity market was spread over five different listings. This near balance was brought about by gains registered in three components and two non-movers.

Trading activity in the fixed interest sector of the market overshadowed its equity counterpart.

Maltapost was the day's star performer with the equity trading 3.9 per cent higher than its previous level. Activity started well into the session and continued trading up to the €0.80 price level which equates to a rise of 3c on a total volume of 37,513 shares. As the session terminated, there was outstanding demand for 3,000 shares best bid at €0.75 against an unsatisfied supply of 3,091 shares offered at €0.80.

Two transactions executed in Bank of Valletta shares carrying a volume of 2,600 shares saw the price rise marginally higher by 0.03 per cent to close at €3.61,9. Similarly, HSBC Bank Malta registered the same percentage gain, now priced at €2.89,9 over a mere turnover of 25 shares.

FIMBank shares remained unchanged during the session, with the price trading at the €1.30 level. Turnover here consisted of a total of 14,000 shares, changing hands across two deals.

A single trade in Santumas Shareholding shares failed to alter the price of €3.10, as two investors swapped 3,000 shares.

In the fixed interest sector of the market, activity was spread across six corporate bonds and 17 government stocks.

The 5.7 per cent MGS 2012 (III) again attracted the highest turnover, with 2,404,741 nominal, pushing the price higher to €108.45. The highest percentage increase in the local bond market was registered in the 7.8 per cent MGS 2018 as 49,968 nominal were swapped at a price of €130.01 therefore trading higher by 556 ticks.

International market report - weekly round-up

Equity markets suffered heavy falls as risk appetite crumbled in the face of mounting fears about a deep global recession. The economic news this week in the US, the UK and eurozone and Japan has been catastrophically weak, confirming the industrialised economies are in deep recession.

Wall Street snapped a five-session winning streak as traders, upon their return from the Thanksgiving break, were greeted with official confirmation that the economy has been in recession for a year. The pledge by General Electric, a global bellwether, to leave its dividend intact despite a fragile economy sparked optimism among investors, yet still not sufficient to avoid the benchmark S&P 500 index from overturning more than half of last week's tenacious gains. The Dow Jones Industrial Average stood 1.55 per cent lower at 8,591.69 and the technology heavy Nasdaq Composite Index shed 2.59 over the week under review.

On the other side of the Atlantic, European equities slumped, pressured by banks and commodity stocks, as mounting concerns over the spectre of weakening demand came back into focus after manufacturing data from the eurozone and UK pointed to a deep recession. In fact, the main European equity indices lost value over the week, with the benchmark FTSE 100 loosing 0.43 per cent to 4,169.96, Frankfurt's Xetra Dax sliding 1.45 per cent and the CAC 40 shedding 1.89 per cent to 3,166.65.

Asian markets endured a grim week, as stock markets fell sharply across the region amid mounting fears about a deep global recession. The Nikkei 225 in Tokyo shed 5.36 per cent as automakers, facing a sharp drop in the US car sales, weighed on the market. The Hang Seng Index was only marginally lower over the 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.