Business Irish

Monday 25 September 2017

ISEQ breaks 4,800 barrier for first time since 2008

Jakarta's stock market is basking in the quick turnaround the economy made from last year's currency crisis
Jakarta's stock market is basking in the quick turnaround the economy made from last year's currency crisis
Colm Kelpie

Colm Kelpie

THE ISEQ marked another milestone yesterday, breaking through the 4,800 barrier for the first time since mid-2008 as the World Bank said the global economy will bounce back this year.

By early afternoon, the Dublin Index was up 0.6pc or 27.41 points to 4810.45.

European stocks also rose for the fourth day running, the benchmark Stoxx Europe 600 Index heading for its highest close in almost six years, after the World Bank raised its global growth forecast. US stock-index futures and Asian shares rose.

In Dublin, the leaders included Permanent TSB, which extended gains this week, rising 23.4pc to 10 cents.

Its share price has been increasing since Monday after it forecast a 1-0pc return on equity for its good bank unit by 2017 under a plan to return the bank to private hands.

Independent News & Media rose 6.5pc by early afternoon to 17 cents, while exploration firm Providence Resources increased 2pc to €3.57.

It was a poor start to the day for the some of the major stocks.

The laggards included insurance group FBD, which slipped 0.6pc to €19.19, while dairy group Glanbia was down 0.5pc to €10.72 by early afternoon.

While Permanent TSB was enjoying increases, AIB and Bank of Ireland, the two so-called pillar banks, recorded decreases.

AIB was down 2pc to 15 cents while Bank of Ireland fell 0.7pc to 31 cents.

Elsewhere, the the Stoxx 600 climbed 0.6pc to 333.28 at 11:47 am in London, taking its four-day gain to 1.5pc.

The index is heading for its highest close since January 2008. Standard & Poor's 500 Index futures rose 0.pc, while the MSCI Asia Pacific Index advanced 0.6pc.

The World Bank increased its global growth forecasts, predicting the economy will expand 3.2pc this year. That compares with a June projection of 3pc and is up from 2.4pc in 2013.

In London, the FSTE 100 was up 0.5pc at 1.25pm, France's CAC 40 increased 0.6pc and Germany's DAX had risen 1.4pc.

"We think that the economic surprise for 2014 will be on the upside," said Paris-based Frederic Tassin, of Aviva Investors in France.

"We're more optimistic about the outlook for Europe. We're still finding a lot of opportunities in terms of valuations in equities."

Burberry Group gained 4.9pc after the UK's largest luxury-goods maker posted quarterly revenue that topped analysts' estimates.

Banca Monte dei Paschi di Siena rose 1.2pc after saying Chief Executive Fabrizio Viola withdrew his resignation.

Swedish multinational Hennes & Mauritz climbed 2.1pc.

Europe's second-biggest clothing retailer posted a 10pc increase in total sales in December, topping the 9.1pc gain anticipated in a survey of analysts by SME Direkt.

Car maker Peugeot gained 2.7pc and Daimler rose 1.8pc as a gauge of European carmakers posted the best performance of 19 industry groups in the Stoxx 600. (Additional reporting Bloomberg)

Irish Independent

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