Banks push index higher

Equities rallied during the final session of the week at the Malta Stock Exchange spurred on by banking sector equities on expectations of positive earnings by Bank of Valletta.

Shares of Bank of Valletta initially traded at the Lm5.90 but in the final quarter of an hour a large purchase order was executed in rapid succession, clearing offers up to the Lm5.95 level.

HSBC Bank Malta gained 7c or 1.1 per cent on good volume which saw 6,322 shares being exchanged across 11 transactions. Most of the dealing was executed at the Lm6.32 level with a partially executed order being filled towards the end at Lm6.37.

A single transaction in Lombard Bank saw two investors swap 380 shares at a new historical closing high of Lm7.05, which represents a 4c9 premium to Thursday's closing level.

Maltacom shares recouped the previous day's losses as 17,370 shares were purchased across 14 transactions clearing out all supply up to the Lm1.58 level.

International Hotel Investments tumbled 7.4 per cent as the company reported a loss before taxation of €4.88 million over the first six months of the year. The results were met with disappointment in the market and a single transaction for merely 1,500 shares was executed down at the €0.833 level.

Also on the losers' side, Plaza Centres dropped 2c or 3.1 per cent as 1,500 shares were exchanged at the Lm0.62 level.

In the alternative company's list, Datatrak Holdings continued to reach higher ground as 11,300 shares were purchased across three trades, pushing the price to Lm0.445, its highest level since November 2003.

European bourses rise on strong US GDP data

European stocks rallied after morning losses yesterday, as investors welcomed strong US GDP growth in the third quarter. By mid-afternoon, the FTSE Eurofirst 300 was up 0.4 per cent to 1,175.30, while the Xetra Dax in Frankfurt gained 0.5 per cent to 4,830.38. In Paris, the CAC 40 edged up 0.1 per cent to 4,340.09. London's FTSE 100 rose 0.7 per cent to 5,217.8.

Wall Street cheered to news that the US economy had grown above expectations by 3.8 per cent in the third quarter. The Dow Jones Industrial Average was trading up 0.5 per cent at 10,280.06, while the Nasdaq Composite was up 0.6 per cent to 2,076.92.

Back in Europe, Swiss engineering group ABB beat analysts' expectations as its third-quarter net income nearly doubled as orders rose 15 per cent in the period on rising demand from Asia and the US. The company said it was poised to meet, or beat, the top end of its earnings target. ABB surged 5.4 per cent to SFr9.40. Peugeot, the French carmaker, followed sector peers with third-quarter sales after the close on Thursday, coming short of market expectations, while expressing concerns about the outlook for the full-year and beyond.

Japanese stocks fell yesterday - hit by profit-taking after three days of rises and by some disappointing quarterly earnings. The Nikkei 225 was down 0.5 per cent to 13,346.54 while the Topix fell 0.3 per cent to 1,419.84. Some traders were also nervous about disappointing industrial production figures, although the latest round of employment numbers showed a continuing improvement

The financial news was compiled by Valletta Fund Management (tel. 8007 2344) and BOV Stockbrokers Ltd (2122 7370/1/4).