The local equity market followed its European counterparts into negative territory during yesterday's trading session at the Malta Stock Exchange with the Index losing 0.6 per cent of its value to close the day at 4,852 points.

Middleasea Insurance was the day's top gainer as a single purchase of 1,000 shares executed at the Lm1.66 level, lifted the valuation of the company by 5.7 per cent. This was the first time the equity traded since the company released its interim directors' statement where the board of directors commented that operations in Malta and Italy registered a positive overall result, while their specialised life insurance company maintained its leading position in the Maltese market and continued to contribute positively to the Group's profit. The directors nonetheless stated that second half results may be impacted negatively due to the high volatility in international capital markets.

HSBC Bank Malta was on the contrary the day's worst performer, with the equity shedding 3c or 1.5 per cent as 8,500 shares were sold across 10 transactions, squeezing the price down to Lm1.95.

Bank of Valletta tentatively progressed higher with all the day's 11 trades, which accounted for 4,335 shares changing hands, being struck at the Lm3.59,7 level, which represents a very slight premium to its previous closing price.

International Hotel Investments was the day's most liquid equity with a grand total of 99,704 shares, carrying a market consideration of €101,697, changing hands over five transactions. The equity was mainly driven by sellers who lowered the offer prices down to the €1.015 level.

Similarly, Malta International Airport suffered under soft selling pressure, shedding a single tick as 2,200 shares were swapped at Lm1.39,9. The airport operator has recently commenced two capital intensive programmes which will see the resurfacing of the main runway and the extension of the air terminal.

Elsewhere in the market, Medserv and Maltacom maintained their previous closing prices of Lm1.73,5 and Lm1.35, respectively, on low volume trades.

International market report - Weekly round-up

International equity markets had to bear the brunt of the ever present negative sentiment currently reigning over the global markets. Fears about the effect of the credit crunch continued to loom over the market, dragging most of the major indices down, with the Nasdaq being one of the worst performers.

In the US, signals from Cisco Systems Inc. that the credit crisis was hurting demand from key customers and a disappointing outlook from Qualcomm Inc, triggered a sell-off in the technology stocks.

This, coupled with losses in energy stocks due to the drop in oil prices, propelled US stocks lower. The week's only breather for the technology index was the news that Apple Inc was in talks to offer iPhones in China. In Europe, the sentiment was slightly better after Allianz and HSBC posted good results, briefly dampening credit crunch fears. Furthermore, the prospect of a merger of the two titans, Rio Tinto and BHP Billiton, in the mining sector lifted mining shares.

However, this positiveness was weighed down by the effect of the slide in the price of oil over energy stocks.

In Asia, the major factors contributing to the Nikkei's drop were the strong yen, which hit exporters, setbacks in a planned merger due to subprime losses and losses in energy stocks. Unfortunately, stronger than expected GDP data here failed to lift the market into positive territory.

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.