Business Irish

Wednesday 28 June 2017

ISEQ jumps as markets skirt records

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
Thomas Molloy

Thomas Molloy

European stocks rebounded from a two-day decline, buoyed by a rally in steelmakers.

In Dublin, the benchmark ISEQ Overall Index rose 1pc to 6,158 points as companies such as Irish Continental benefit from the rebounding economy. On the bond markets, the NTMA sold €750m of seven-year bonds at a yield of 0.81pc.

Back on the stock exchange, Ormonde Mining jumped 8.3pc amid hopes that a rival tungsten company may buy it.

Irish Continental closed up 6.3pc after it said sales and profits rose as passenger numbers advanced.

Property companies also had a good day. Hotel operator Dalata closed up 3.9pc while house builder Abbey ended the session 3.8pc higher.

The biggest loser was Providence which slumped 10.8pc after a statement failed to give an update on who will share exploration costs. UTV fell 7pc as it said UTV Ireland won't meet targets while FBD closed down 4.1pc after complaining of challenging markets.

Elsewhere, the Stoxx Europe 600 Index rose 0.6pc to 397.99 at the close of trading after a report showed fewer Americans than forecast filed for jobless claims last week, pushing the past month's average to a 15-year low.

"It was time for a rebound after the past two days," said Steven Santos, a broker at X-Trade Brokers in Lisbon.

"The fact that jobless claims in the US were not a disaster has just given investors that little bit of confidence they needed."

ArcelorMittal and Salzgitter jumped more than 5.7pc after the European Union expanded a competition probe, opening up the prospect of tariffs on non-stainless steels from China and Russia. ThyssenKrupp climbed 2.8pc.

In New York, the dollar was near its lowest since January against a currency basket after a lower-than-expected reading of US producer price inflation.

Irish Independent

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