Local investors took inspiration from other European markets which opened weaker and, during yesterday's trading session at the Malta Stock Exchange, sold equities to reduce their exposure. As a result, the MSE Index closed 0.3 per cent lower at 5,436 points.
Banking sector equities suffered the brunt of this selling activity with Bank of Valletta losing 2c or 0.5 per cent to close at Lm3.95, its lowest level this month. The share was the most actively traded, with 22,385 shares being exchanged across 18 transactions.
HSBC Bank Malta lost a penny as 14,399 shares were exchanged across 22 transactions. The equity traded within a tight trade range, closing in the end at the Lm2.19 level and leaving 1,000 shares best bid at Lm2.18,3 against supply of a further 1,000 shares at Lm2.19.
Lombard Bank terminated the session lower by the slimmest of margins as merely 83 shares were swapped between two shareholders at the Lm5.98,9 level, while FIMBank traded unchanged at $1.90.
Elsewhere, early selling activity in Maltacom was reversed by late buying which restored the price back to its previous closing level of Lm1.95. An undisclosed amount of supply at this level remained on the board at the end of the session while demand for 390 shares was best bid at Lm1.94.
Sustained buying activity in Simonds Farsons Cisk saw 11,400 shares being cleared off the offer side without affecting its previous closing price of Lm0.78. Similarly, 16,300 shares of International Hotel Investments were exchanged across four transactions at the €0.91 level.
Two late transactions in Malta International Airport saw 1,500 shares being exchanged at the Lm1.45 level.
Crude fears drag markets lower
European bourses were sharply lower by midday yesterday as oil prices rose sharply after BP closed its Prudhoe Bay oilfield in Alaska following the discovery of a pipeline leak. The FTSE Eurofirst 300 fell 1.1 per cent with the Xetra Dax in Frankfurt off 1.6 per cent and the CAC-40 in Paris down 1.5 per cent.
London shares fell sharply spooked by a sharp rise in the oil price. The price of crude jumped by over $1 to more than $77 due to the closure of BP's facility in Alaska's Prudhoe Bay, which will cut production by 400,000 barrels a day. The FTSE 100 was down one per cent and the FTSE 250 gave up 0.9 per cent.
The Japanese stock market fell heavily responding to fears about the US economy, including Friday's weak US jobs data. The Nikkei 225 dropped 2.2 per cent and the Topix was down two per cent.
US stock market futures pointed to a lower start as nervousness ahead of the Federal Reserve's interest rate decision today and the closure of the largest oilfield in the US weighed on sentiment. About an hour before the opening bell, S&P 500 futures were down 6.4 points and Nasdaq 100 futures had shed 8.25 points. Dow industrial futures were 52 points lower.
Valletta Fund Management (tel. 8007 2344) and Bank of Valletta plc (Tel 2131 2020). BOV and VFM are licensed by the MFSA to conduct investment services business.