Shares gain before Christmas

Investors threw caution to the wind as the buying activity continued unrelenting on the Malta Stock Exchange for the 21st continuous session.

HSBC Bank Malta was the day's top gainer as 10,385 shares were exchanged across 12 transactions. The price rallied by 13c7 or 1.8 per cent to close at a record high of Lm7.65. Bank of Valletta shares too had another positive showing, this time gaining 10c1 or 1.4 per cent. The day's turnover amounted to 7,058 shares which were transacted across 20 deals. The equity touched an all-time high of Lm7.50 before the final trade of the day brought the price down slightly to close at Lm7.45,1.

A single transaction in Lombard Bank saw two shareholders swap 250 shares at a 3c premium to its previous closing level at Lm7.63. The biggest action was in Maltacom where a grand total of 229,352 shares were exchanged across 45 trades. Surprisingly the equity closed the day unchanged indicating that buyers and sellers are just as eager to trade at the current level of Lm1.93.

As many as 51,000 shares of the Global Financial Services Group were purchased across seven transactions pushing the price to Lm1.30,1, its highest level in three and a half months.

On the contrary, Malta International Airport declined 1c5 as investors booked profits following the recent rise in its price. During yesterday's trading session as many as 21,846 shares were sold across 15 trades dragging the price down to Lm1.54,5.

European bourses higher

European stock markets were higher on the last trading day before the Christmas break yesterday, although volumes were thin, with some bourses only open for half a session. By mid-morning, the FTSE Eurofirst 300 was up 0.2 per cent to1,278.14, while Frankfurt's Xetra Dax added 0.3 per cent to 5,414.82. In Paris, the CAC 40 was up 0.2 per cent to 4,761.09.

London's benchmark index hovered below the 5,600 level in yesterday's shortened trading session. The FTSE 100 was seven points or 0.1 per cent lower at 5590.0 at mid-day while the FTSE 250 was up 9.9 points or 0.1 per cent at 8,736.9.

Wall Street sprinted ahead on Thursday after a string of generally positive economic figures renewed the view among investors that the Federal Reserve would soon end its cycle of monetary tightening. In addition to news of higher consumer spending and stronger US economic activity, investors were cheered by a soft PCE measure - the inflation gauge favoured by the Federal Reserve - which rose 0.1 per cent in the month rather than the 0.2 per cent expected by analysts.

The upbeat outlook on the US economy propelled the Dow Jones Industrial Average 0.5 per cent higher to 10,889.44 on an otherwise thin pre-Christmas trading session. The broader S&P500 gained 0.4 per cent to 1,268.12, while the Nasdaq Composite, powered by a 1.3 per cent rally in the semiconductor sector, rose 0.7 per cent to 2,246.49.

The financial news was compiled by Valletta Fund Management (tel. 8007 2344) and BOV Stockbrokers Ltd (2122 1732).