ISEQ dips as European bourses trend down on resource stocks
Published 25/07/2015 | 02:30
It was a bad end to the working week for European bourses. A drop in commodity stocks pushed indices to a low for the week,
The ISEQ Overall Index dropped, but not by as much as many larger European peers. It was 0.45pc, or 29.12 points, lower at 6,482.53.
Movers included Bank of Ireland, which rose 0.79pc to 38.4 cent. It had traded higher earlier. Permanent TSB was 2.7pc, or 14 cent lower, at €5.02.
Ryanair, which releases first-quarter results on Monday, was down 1.2pc at €12.32. Packaging group Smurfit Kappa, which also releases results next week, declined 0.8pc to €27.95.
The European basic resources and energy sectors fell 3.3pc and 1.4pc respectively after copper prices tumbled to a six-year low on worries about Chinese demand, and oil neared four-month lows after data showed a contraction in China's factory sector.
"The consensus view does appear to now be for a slowdown in China, and this will subdue demand for the metals group in general," said Juliet Cohn, portfolio manager at Principal Global Equities, which manages more than $330bn in assets.
"We are currently finding companies with greater upside to estimates elsewhere in the market," she said.
Germany's DAX fell 1.5pc, while the FTSE-100 was 1.1pc lower. France's CAC-40 fell 0.58pc.
BASF fell 5pc, after its earnings missed expectations. Volkswagen was down 3pc after publication 'Manager Magazin' said the company's China manager was readying a cost saving programme because the carmaker's full-year group profit could fall by more than €1bn due to weak demand in the country. That dragged other carmakers such as Daimler down.
Some companies got boost from their positive earnings updates. Telecom major Vodafone rose 3.4pc after results that showed improvements.