Financial News

Investors were in selling mode during yesterday's trading session at the Malta Stock Exchange, many frustrated at the seemingly lack of catalyst which could move the market higher.

Bank of Valletta shares suffered the brunt of the selling activity, as bidders failed to support its previous trading level. A total of 5,879 shares changed hands during the session with the price dropping 5c or a whole percentage point, to close the day at Lm4.75c.

Selling activity in HSBC Bank Malta was also evident but here investors seemed willing to purchase the stock ahead of the bank's half yearly report and interim dividend declaration, due out within a month. Alas, the price still closed the day in negative territory at Lm4.79c.

Malta International Airport shares commenced trading as much as 2.2 per cent lower as an investor got carried away by selling activity in the larger capitalised companies. But MIA shares registered an impressive comeback and late buying activity ensured the price not only recouped its losses but also ended 0.75 per cent higher at Lm1.34c.

A single trade of 1,450 shares in International Hotel Investments was executed at the €0.78c8 level while trading in Maltacom and Simonds Farsons Cisk did not affect their previous closing price of Lm1.36c and Lm0.95c respectively.

Crude soars past $59 a barrel amid supply fears

European stock markets fell as the US benchmark oil price climbed into record territory above $59 a barrel, with $60 a barrel expected by analysts within a couple of days. The higher crude price benefits the heavyweight oil companies but weighs on sentiment due to implication on costs and drag on economic growth.

The FTSE Eurofirst 300 fell 0.4 per cent to 1,135.14 with Frankfurt's Xetra Dax of 0.7 per cent to 4,573.42, the CAC-40 in Paris down 0.7 per cent to 4,189.22 and the FTSE 100 in London off 0.2 per cent to 5,065.9.

The euro weakened around a cent against the dollar after European Union leaders failed to agree on a long-term budget. The euro fell as low as around $1.2170 as a weaker single currency helps eurozone exporters' competitiveness.

On Friday, Wall Street posted modest gains, capping a week of slow but steady upward progress. A spike in oil prices, another of the week's main themes, helped oil companies and gave a further boost to the Dow Jones Industrial average which closed up 0.4 per cent at 10,623.07.

Japanese stocks closed down mildly on Monday, ending the benchmark average's six-day bull run. The tech-heavy Nikkei 225 fell 0.3 per cent to 11,485.35. The broader-based Topix slid by 0.1 per cent to 1,170.65. Analysts said stocks were hit by profit-taking, particularly those of exporters, which had risen in recent days on dollar's strength against the yen. Transport equipment, which is relatively export-dependent, fell 0.4 per cent.