Sunday 26 February 2017

ISEQ treads water as Europe falls

Patrick Edwards

Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange. Photo: Reuters
Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange. Photo: Reuters

The ISEQ closed almost unchanged as gains in Kerry and Ormonde offset declines elsewhere.

Ormonde Mining advanced 7pc to 4.5 cent after saying the previous day that it is close to finalising a funding agreement with US private equity giant Oaktree that will enable it to develop its tungsten mine in Spain - one of the world's biggest such undeveloped projects. Kerry posted the biggest advance among heavyweights, rising 1.6pc to €67.50.

Permanent TSB slumped 15.7pc to 5.3 cent on the junior market as the company confirmed plans to sell shares and dilute existing stakes by giving one new share for 100 existing shares.

The ISEQ closed down just 1.25 points, or 0.02pc, at 6,263.23 points.

In London, Tullow Oil Plc jumped 8.6pc after Citigroup recommended buying the shares.

Elsewhere, European stocks retreated from a record, snapping a five-day advance, as Nokia Oyj and banks declined. The Stoxx Europe 600 Index fell 0.5pc to 411.7 at the close of trading, paring earlier losses of as much as 0.8pc.

Nokia slid 3.6pc after confirming talks to buy Alcatel-Lucent, which jumped 16pc. Banco Santander and Intesa Sanpaolo dragged bank stocks to the biggest loss on the Stoxx 600. Rio Tinto and BHP Billiton led a rebound in miners, with gains of at least 2.8pc.

"Obviously the air is getting thinner and valuations are elevated," said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank in Bonn.

"After such a good run, it's getting too risky for investors to just jump into the market. We'll focus on the upcoming earnings season and see what outlooks companies give us for more clues."

The Stoxx 600 has rallied 20pc this year amid better-than-expected data, pushing valuations to the highest in at least a decade.

Irish Independent

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