Local investors kept the positive trend going during yesterday's trading session at the Malta Stock Exchange on continued buying activity particularly in those equities which have suffered over the previous months.
Go was the day's top gainer, with the quadruple play telecommunications provider gaining 7c or 3.1 per cent to reclaim the €2.30 level. The day's activity consisted in 17,300 shares which were all exchanged at this price over seven trades. Investors seem to have put aside the company's interim results, negatively affected by a court ruling, and the lack of an interim dividend, perceiving that the bad news was being fully priced in.
Bank of Valletta registered another double digit monetary gain, climbing 14c or 3.1 to reclaim the €4.72 level, its highest price since early July. The equity has quickly reversed its negative trend, with sellers retreating their offers and forcing investors wishing to purchase shares to up their bids. HSBC Bank Malta witnessed a similar occurrence with the price gaining 6c or 1.9 per cent, as 3,478 shares carrying a market consideration of €11,238, were purchased across six transactions pushing the price up to reclaim the €3.26 level. FIMBank closed lower by the slimmest of margins as two investors swapped 5,000 shares at the $1.909 level, while Lombard Bank Malta continued trading at the €2.97 level, with a further 13,500 shares being exchanged across two transactions.
A single trade in Crimsonwing saw 15,000 shares being exchanged at the initial public offering price of €0.50, which represents a 1c9 or 3.7 per cent discount to its previous traded level. Elsewhere RS2 Software attracted a trade of 2,000 shares which did not alter its previous closing price of €0.829.
International Hotel Investments, which earlier this week was surpassed by Bank of Valletta as the second largest company on the market, was the day's most liquid equity with a grand total of 32,812 shares being struck across three transactions at €1.05.
International market report - Weekly round-up
In the US unexpected signs of strength in the US economy gave Wall Street equity markets a lift, with a sharp retreat in oil prices adding to the positive mood. The continued talks of a possible capital injection to the tune of $6 billion of Korea Development Bank in Lehman Brothers, plus the downgrade of Gustav from hurricane to tropical storm helped support the markets perform even stronger. However, stocks gave up earlier gains as traders returned form the labour Day holiday to face tumbling oil prices that hurt shares in energy related companies, leading the S&P 500 lower by 0.52 per cent.
The Nasdaq Composite Index was the main loser of the week, shedding 2.05 per cent to close at the 2,333.73 level while the Dow Jones Industrial Average was the only gainer. The European stock market enjoyed a much needed rally as falling oil prices soothed concerns about inflation, forcing investors to flee from commodities stocks into battered banks, construction companies and airlines. This positive mood was short-lived as the FTSE 100 snapped a three-day run of gains as weaker energy stocks along with weaker economic data led the European bourses lower. Besides, Commerzbank's $14.5 billion deal to buy Allianz's Dresdner Bank unit dragged down banking shares. Nonetheless the German and French Index powered ahead this week to register a gain over the preceding week.
Asian stock markets retreated across the region whereby the Nikkei 225 Average fell by 1.65 per cent as the resignation of Prime Minister Yasuo Fukada unsettled investors, while the Hang Seng index dropped 2.78 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.