Stock Exchange: Market reverses last week's gains

The MSE Share Index lost the gains accumulated last week as it dropped by 0.9% during this morning‘s trading session on the Borza to close just above the 3,500-point level. Today's downturn was mainly due to declines in Bank of Valletta plc and HSBC Bank Malta plc. On the other hand global stock markets reacted very positively to the €750 billion emergency rescue package announced by the EU finance ministers last night.

The UK FTSE 100 Index is up more than 5% with the French CAC40 climbing 9%. Furthermore US markets are also set for a strong uplift with futures on the S&P 500 Index showing a 4.7% rise.

BOV shares started trading without the right to the interim dividend and the share price shed €0.06 (1.8%) to close at the €3.27 level on high volumes amounting to almost 30,000 shares. BOV shareholders as at close of trading last Friday 7 May are entitled to receive a net dividend of €0.04875 per share on 28 May. HSBC also succumbed to selling pressure as its share price slipped 1.3% to the 3.02 level on lower volumes of 10,350 shares.

Malta International Airport plc shares also closed in negative territory possibly in reaction to the April 2010 traffic statistics published last Friday afternoon.

The statistics revealed a 6.5% decline in passenger departures during April due to the many flights cancellations following the volcanic ash cloud disruptions. MIA's equity slipped 1.5% to close at €3.201 on volumes of 5,000 shares. Despite the lower passenger numbers in April, the airport still registered a 2.9% increase in passenger departures in the first four months of this year.

MIA is schedule to hold its annual general meeting later on this afternoon.

A trade of 61 million shares in International Hotel Investments plc was effected this morning as Istithmar of Dubai sold 11% of IHI to LFICO. This had been officially announced by IHI last Friday.

Malta Government Stock prices moved sharply lower as the European benchmark yield rose to almost 3% in reaction to the emergency rescue package. On Thursday the Treasury is expected to announce pricing details of the three new Malta government Stock issues announced last week.

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