Saturday 27 May 2017

ISEQ outperforms Europe amid turmoil

Traders work on the floor of the New York Stock Exchange (NYSE) shortly before the closing bell in New York. Photo: Reuters
Traders work on the floor of the New York Stock Exchange (NYSE) shortly before the closing bell in New York. Photo: Reuters
Gavin McLoughlin

Gavin McLoughlin

On a day of global turmoil the ISEQ index of Irish shares dropped 1.28pc, to 6,704.91.

The biggest laggard on the day was Merrion Pharmaceuticals, which recently sold off some of its IP to Novo Nordisk and announced its intention to become an investing company.

It was down more than 14pc to 12c each. Also down was Swiss-Irish frozen baker Aryzta, which lost more than 3.5pc, continuing the dismal run in recent months.

On the other side of the board, penny stocks Petroneft Resources and Kenmare Resources were up 26pc and 11pc respectively.

The ISEQ outperformed Europe where stocks had a bad start to the year on the back of the tumble in China.

Automakers declined the most in the Stoxx Europe 600 Index, which lost 2.5pc for its worst start to a year ever.

Germany's DAX Index, among the best performers in 2015, dropped 4.3pc, the biggest slide for the export-driven gauge since the China-led rout in August.

"I've just returned to the office today and this is definitely not a nice welcome," said Daniel Murray, London-based head of research at EFG Asset Management. "Two things have combined to create a really strong negative sentiment today: the end of last year was unusually weak, and markets in China have been terrible overnight."

US stocks tumbled to their lowest levels since October to start the day's trading, with the Dow Jones Industrial Average earlier falling more than 400 points as a rout in Chinese equities renewed concern that an economic slowdown there will damp global growth. The S&P 500 fell 2pc to 2,003.36 at 1:39 p.m. in New York, after ending 2015 with an annual decline for the first time since 2011.

Additional reporting by Bloomberg

Irish Independent

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