The Malta Stock Exchange index dropped 75 points on Friday as investors dumped financial

services stocks, causing the index to fall 2.1 per cent in a session marked with brisk trading volume.

Financial services shares were broadly down on the day as three out of the four banks to trade on the day finished lower, while Malta’s listed insurance company was also down at the end of the session.

Bank of Valletta plc, fell 3c, or 0.9 per cent, to close at €3.28 in five deals of 3,578 shares while HSBC Bank Malta plc closed down 6c, or 2.0 per cent, to close at €3.00 in eight trades of 11,115 shares.

Also in the banking sector, FIMBank plc ended the day lower by 2c, or 2.0 per cent, to close at US$0.98. Late in the day on Thursday, FIMBank announced its financial results for the six months ended 30 June 2010. The group posted an after-tax profit of USD3.39 million compared to USD2.92 million registered for the same period in 2009. The directors do not recommend the payment of an interim dividend for the period under review.

Lombard Bank Malta plc, was the only banking stock to finish higher in the session, closing marginally up, by 1c, to end at €2.80.

Middlesea Insurance plc, meanwhile, fell 5c, or 4.6 per cent, to close at €1.05 in four trades of 1,300 shares.

Other stocks to register a change in value on the day were International Hotel Investments plc, which dropped 5c9, or 6.6 per cent, to close at €0.84 and Medserv plc, which closed on the upside by 4c5, or 1.1 per cent, to end at €4.28.

Shares which also traded yesterday yet closed unchanged were GO plc, Malta International Airport plc, and Simonds Farsons Cisk plc, all trading in relatively light volume.

Trading in the corporate bond market continued to be light as fifteen deals took place in six bonds. The biggest move on the day was made by the 7.00% MIDI 2016-2018 bond which gained £3.00, or 2.9% to close at £108.00 in volume of £40,800 nominal.

Trading in the government stock market, meanwhile, was also light as €57,513 nominal was traded across nine deals in nine government stocks. The 6.60% MGS 2019 I issue experienced the biggest gain, rising €0.61, or 0.5 per cent, to close at €119.52 in a single trade of €195 nominal.