Irish shares hit back against earlier losses in market
Published 15/01/2011 | 05:00
IRISH shares fought back after Thursday's loss yesterday, as takeover speculation and positive company news buoyed the market.
On the day the index closed up 0.6pc, or 17.39 points, at 2,919.81 to finish the week ahead, having opened at 2,870.84.
Norkom was the headline maker of the day, soaring more than 35pc after it emerged that the giant defence group BAE Systems had made an offer for the financial software company.
The announcement of the offer led to an immediate spike in the stock, which closed at €2.09, an increase of 35.71pc.
Fyffes continued to thrive on good sentiment from its interim management statement earlier in the week, closing up 8.47pc at 41c, while C&C gained 1.27pc to close at €3.58 after the cider maker said it remained on track to achieve its guidance for the year.
Construction giant CRH added 2.57pc after it was raised to "buy" by Bank of America. The stock closed back over the €15 barrier, ending the day at €15.17.
Those gains were enough to overwhelm the banks who all posted losses amid speculation that Allied Irish Banks may have sold its asset management unit to a Swiss firm.
By the end of trading AIB was down 0.33pc at 30c while Bank of Ireland had slumped 5.52pc to 34c. Irish Life and Permanent dropped 4.55pc to 84c.
Across Europe national benchmark indexes fell in nine of 18 western European markets. The UK's FTSE 100 slid 0.4pc, while France's CAC 40 climbed 0.2pc. Germany's DAX was little changed and the Stoxx Europe 600 fell 0.1pc after China moved to cool its overheating economy.
"This is one step short of China raising interest rates again and it's designed to curb the excesses of their economy," said Manoj Ladwa, a senior trader at ETX Capital in London.
In London, Xstrata, the world's fourth-largest copper producer, fell 1.2pc and Anglo American lost 3.2pc. BHP Billiton, the world's biggest mining company, fell 1.8pc.
Elsewhere, ThyssenKrupp slid 3.2pc after its chief financial officer quit Germany's largest steelmaker three years before his contract was due to end.
Novo Nordisk lost 1.6pc after Deutsche Bank lowered its recommendation for the world's largest maker of insulin to "sell" from "hold."