Tuesday 6 December 2016

Renewed Greek optimism boosts stocks

Colm Kelpie and agencies

Published 28/04/2015 | 02:30

Irish shares increased yesterday in line with the major European indices, with Greek stocks rallying amid suggestions the country might be willing to compromise.
Irish shares increased yesterday in line with the major European indices, with Greek stocks rallying amid suggestions the country might be willing to compromise.

Irish shares increased yesterday in line with the major European indices, with Greek stocks rallying amid suggestions the country might be willing to compromise.

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By the close in Dublin, the ISEQ Overall Index was up 0.93pc or 58.55 points to end the trading session at 6,356.91.

The leaders on the Dublin market included packaging giant Smurfit Kappa, which increased 2.1pc to €28.93, while insulation group Kingspan rose 0.6pc to €18.75.

On the other side of the board, the laggards included Ryanair, which fell 0.4pc to €11.18 while bookmakers Paddy Power was down 0.1pc to €81.95.

Elsewhere, the Stoxx Europe 600 Index rose 1pc to 412.42 at the close of trading. Greece limited the role of Finance Minister Yanis Varoufakis in talks with creditors after Eurozone counterparts criticised him at a meeting on Friday, when they refused to disburse more aid until terms are met.

Europe's benchmark gauge reversed losses of as much as 0.7pc after Germany newspaper 'Bild' reported that Greek Prime Minister Alexis Tsipras is willing to suspend minimum-wage plans and make other changes to reform proposals.

Greek stocks jumped the most in two months amid signs of compromise before its payments due to pensioners and state employees this week, and to the International Monetary Fund on May 6.

"Stocks quickly reacted to news that Tsipras is willing to abandon one of his pre-election pledges," said Ramiro Loureiro, a Lisbon-based market analyst at Banco Comercial Portugues' Millennium unit.

"Markets clearly see this as a sign that Greece is moving closer to the euro group."

National Bank of Greece and Alpha Bank surged more than 8pc, pushing the ASE Index up 4.4pc. HSBC contributed the most to gains on the Stoxx 600, after a report that it's considering spinning off its UK retail bank.

Irish Independent

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