Financial news

Investors' sentiment remained positive as equity prices buoyant for the second consecutive session yesterday at the Malta Stock Exchange with the Index climbing by another 2.3 per cent, exactly the same as on Monday to close the day at 4,977 points.

Once again, HSBC Bank Malta, the largest company by market capitalisation, provided most of the lift as buying activity continued whilst supply seemed to dry up. The equity commenced trading at the Lm2.05c level and rose steadily to the top of the day's trade range at Lm2.07c2. By the end of the session a total of 23,215 shares were exchanged across 36 transactions, helping the price gain 11c or 5.6 per cent to close the day at Lm2.07, their highest level in two months.

Activity in Bank of Valletta was more contained with barely two trades executed. Nevertheless, investors were willing to pay a one cent or 0.3 per cent premium to their previous closing price and 1,085 shares were collected off the offer side at Lm3.61.

Buying momentum in Malta International Airport continued with the equity rising by one cent or 0.7 per cent as 27,431 shares were exchanged across 20 transactions. The equity reclaimed the Lm1.40 level, for the first time since September 2006.

Two investors swapped 2,000 shares of GlobalCapital at the Lm2.17 level, which represents a three cents or 1.4 per cent discount to its previous closing price.

Elsewhere in the market, low volume activity in Maltacom and Simonds Farsons Cisk did not affect their previous closing prices of Lm1.45 and 80c respectively.

Construction and leisure goods sectors drive equity markets to positive territory

Miners and financials led the FTSE 100 higher in London yesterday as metals prices firmed and banks were in favour with traders. Banks rose after positive comment on the sector from Credit Suisse. By late morning, the FTSE 100 was up 0.4 per cent, while the mid-cap FTSE 250 gained 0.4 per cent.

European equity markets moved higher by mid-morning, helped by strength in the construction and leisure goods sectors, and following overnight gains on Wall Street and in Asia. Saint Gobain led the FTSE Eurofirst 300 with a gain of five per cent in demand for a second successive session as brokers warmed to the potential value that restructuring could deliver for the French building materials group. The FTSE Eurofirst 300 rose 0.5 per cent, while the German Xetra Dax gained 0.7 per cent and the French CAC 40 added 0.7 per cent.

Brokerage upgrades and gains in consumer finance stocks helped push up the Japanese stock market. The Nikkei 225 closed up 0.9 per cent. The broader Topix rose one per cent.

US stocks lacked conviction on Monday as the onset of the quarterly earnings season outweighed the influence of merger and acquisition activity and stock upgrades.

BOV and VFM are licensed by the MFSA to conduct investment services business.

Valletta Fund Management (Tel. 8007 2344) and Bank of Valletta plc (Tel. 2131 2020)