Shares in Aer Lingus' parent hit turbulence after profit forecast
Published 31/10/2015 | 02:30
Aer Lingus' parent IAG fell the most in more than three weeks after a raised 2015 profit forecast lagged behind analysts' predictions.
IAG dropped as much as 5.1pc, the steepest intraday decline since October 7. Operating profit this year, excluding one-time items and newly acquired Aer Lingus, will total €2.25bn to €2.3bn, IAG said yesterday.
Overall, European shares were little changed on the final day of trading in a month that has seen their strongest rally in six years.
The Stoxx Europe 600 Index dropped less than 0.1pc at the close of trading. After rising as much as 0.3pc and falling as much as 0.7pc, the gauge pared losses in the latter half of the session and almost erased a drop in the final settlement. By the close in Dublin, the ISEQ Overall Index was up 0.44pc ,or 38.05 points, to end the trading week at 6,428.55.
The leaders on the Dublin index included building materials group CRH, which rose 1pc to €24.86, while insurance group FBD increased 1.3pc to €6.95. On the other side of the board, the laggards included speciality baker Aryzta, which slipped 0.8pc to €41.23, while Glanbia closed down 0.6pc to €17.64.
"We're part way through earnings season and I think it's been mixed," said Ben Kumar who helps oversee about $14bn as an investment manager at Seven Investment Management in London.
"It's not been a particularly fun ride but if you're overweight Europe since the start of the year, you've had a pretty decent year." Europe's benchmark measure gained 8pc in October after President Mario Draghi said the European Central Bank will consider additional easing in December.
Its rebound from a quarterly rout has been led by gains in carmakers, miners and energy producers - the groups most battered in the sell-off.