A goal by Federico Falcone, who had joined Valletta earlier this month from Birkirkara, enabled the Citizens to rescue a point in a 1-1 draw with the Stripes at the National Stadium on Sunday.
Birkirkara remain third but now lie three points behind Gzira and three ahead of fourth-placed Mosta with Hibernians and Balzan lying in joint-fifth place five points behind them.
On the other hand, Valletta remain ninth as this was their fourth successive draw. They now lie one point behind Floriana and two behind Gudja United.
Birkirkara’s latest signing Andrei Ciolacu was included as a substitute.
Yannick Yankam put the Stripes ahead on the 20th minute heading home off a corner by Matteo Fedele from the left.
Valletta levelled matters on the 34th minute when Shaun Dimech sent Federico Falcone through and the latter slotted the ball home past goalkeeper Giacomo Nava.