Business Irish

Wednesday 18 October 2017

ISEQ stalls despite US outlook boost

ISEQ stalls despite US outlook boost
ISEQ stalls despite US outlook boost

IRISH shares were little changed while European stocks advanced after the IMF said it will raise its US growth outlook.

In Dublin, the ISEQ closed down 2.6 points at 4,490.32 as financial services group IFG plunged 12.9pc to €1.83.

Ormonde Mining also posted a big decline, falling 10.7pc to 5c although the Spain-focused miner often jumps and falls by large amounts. Among the gainers were Petroceltic which jumped 7.7pc to close at €2.05 and Independent News & Media which advanced 4.8pc to close at 11c after it announced that it had completed the publisher's restructuring plan.

The ISEQ was an underperformer. National benchmark indexes advanced in 14 of the 18 western-European markets. France's CAC 40 added 0.5pc and Germany's DAX rose 0.9pc. The UK's FTSE 100 climbed 1.1pc.

"The positive assessment the IMF gave with regard to US growth corroborates the improving economic indicators we have been witnessing," said Konstantin Giantiroglou, head of investment advisory at Neue Aargauer Bank in Brugg, Switzerland.

CRISIS

"The sentiment going into Christmas and the new year is good. We have an improving global economy and for the first time since the financial crisis we should see a synchronous recovery. We should see a continuation of the bull market in 2014."

The IMF will increase its outlook for the US economy as a budget deal and falling unemployment ease doubts about the future, managing director Christine Lagarde said.

The IMF said in October the world's largest economy would expand 2.6pc next year. Ms Lagarde didn't specify new figures.

ARM Holdings, which designs chips for Apple's iPhones, increased 3.9pc as the US company struck a deal to sell the smartphone through China Mobile. Dialog Semiconductor, which got 77pc of its revenue from the iPhone maker, rose 3.4pc to €15.68.

Paris-based Carmat jumped 9.7pc after the company's artificial heart was implanted in a patient for the first time. The surgery took place in Paris on Wednesday and two days later the patient was speaking with his family, the company said.

Irish Independent

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