Thursday 27 October 2016

Irish shares rise amid plans to boost QE

Published 20/05/2015 | 02:30

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters

European shares rose yesterday as a European Central Bank official said the bank expects to increase its bond buying over the coming months.

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By the close in Dublin, the ISEQ Overall Index increased 1.77pc or 108.65 points to end the trading day at 6,259.55.

The leaders on the Dublin market included insulation group Kingspan, which rose 3.8pc to €20.03, while packaging giant Smurfit Kappa was up 2.9pc to €28.51.

Ormonde Mining closed up 5.7pc to 4 cents after shareholders at the company overwhelmingly backed plans by the company that will see US private equity giant Oaktree Capital provide almost $100m (€87m) in financing to develop a Spanish tungsten mine.

On the other side of the board, the laggards included bookmakers Paddy Power, which fell 0.1pc to €81.90, while Donegal Investments slipped 2.6pc to €5.50.

Elsewhere, the Stoxx Europe 600 Index added 1.6pc to 404.89 at the close of trading.

The Stoxx 600 rallied to a record in April amid quantitative-easing measures, before falling 4.3pc through the end of last week.

"There were concerns that liquidity was drying up, and now we got the assurance we needed to stabilise markets," said Michael Woischneck, of Lampe Asset Management in Dusseldorf.

"Whatever the ECB does, it will be enough. This will push the euro down again, support growth, and bring buyers back to Europe. Exporters, like carmakers, should benefit once more. I will have to do some buying now."

Car shares jumped the most in two months, with Volkswagen and Renault rising at least 4.9pc. A report showed European car sales increased for a 20th straight month in April.Elektrobit surged 20pc after Continental agreed to buy its automotive-software business for €600m. Greece's ASE Index climbed 2.6pc, extending Monday's gains. (Additinal reporting by Bloomberg)

Irish Independent

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