The Malta Stock Exchange Index rallied for a second consecutive day yesterday's closing the session at 3,245 points or 0.23 per cent higher than the previous day's reading. Three equities were active with only two components registering a marginal gain in price while the third largest local listing in terms of market capitalisation suffered a negligible decrease in price. On the fixed income market, government stocks advances ahead of expectations of a rate cut by the European Central Bank later during the day.
Bank of Valletta was the day's most liquid and actively traded equity with a total traded volume of 8,680 shares purchased over 13 deals. Throughout the session the price increased to an intraday high of €3.01 only to lose this gain and suffer a 0c1 retreat on profit-taking activity. The equity ended the day at €2.999 less or 0.03 per cent less than the previous close. The total value traded equated to €26,045, the highest for the day. Yesterday, the Bank allocated a bonus share for every five held to shareholders which were on the register as at Monday.
HSBC Bank Malta saw a negligible increase in price of 1c9 or 0.68 per cent to end the session at €2.799. Turnover was spread on five trades for a total value of €13,307 or 4,762 shares.
Go was the other traded component that made a marginal gain in price of 0c5 or 0.28 per cent from the last day it traded.
In the fixed interest sector of the market activity was spread across seven corporate bonds and five government stocks. The highest percentage gain was registered in the 5% MGS 2021A as the price increased by €1.49 or 1.43 per cent over a single trade. Also, the 6.5% Corinthia Finance 2010 registered the highest turnover for the day amounting to 100,000 nominal.
International market report - weekly round-up
Global risk appetite deteriorated this week, driving down equity prices as investors endeavored to gauge the extent of the global recession.
US President-elect Barrack Obama's efforts to rally support for his huge fiscal stimulus package offered some relief amid the gloom, but failed to offset the negative impact of continued worries about the US labour market. Besides, worries about the coming fourth-quarter earnings season kept US stocks under pressure. Investors are expecting downbeat figures from a host of companies during the season over the coming weeks, particularly after profit warnings in recent sessions. In New York the S&P 500 was down 7.06 per cent at 842.62, the Dow Jones Industrial Average slid 6.49 per cent and the Nasdaq Composite index was off 6.84 per cent at 1,489.64 points.
European bourses took a heavy hit this week as the German government said it would take a 25 per cent stake in Commerzbank. Besides, there was no let up in the grim news from Europe as the Eurozone November unemployment ticked up whereas business and consumer confidence fell to record lows. Fresh raw material producers were also hit as metal prices fell and investors refocused on the continuing deterioration of the global economy with the FTSE 100 in London ending 7.25 per cent lower. Franfurt's Xetra DAX lost 10.44 per cent at 4,422.35 and Paris's CAC 40 index fell 8.79 per cent.
The Hang Seng index touched a five-week low this week, leading to a broad retreat across the region, losing 8.14 per cent whereas Japan's Nikkei 225 shed 9.61 per cent to close at the 8,023.31 level.
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.