ISEQ soars on Fyffes upgrades and hopes of a Greek resolution
Published 20/06/2015 | 02:30
Irish and European stocks climbed on optimism a resolution to Greek debt talks is close and that the fallout of a potential exit from the euro would be contained.
In Dublin, the ISEQ closed up 83.67 points, or 1.4pc, to 6,270.9 points. Fyffes jumped 10.2pc to €1.30 as analysts greeted a bullish statement from the company. Merrion said the stock was "too cheap" and recommended "aggressively" purchasing shares yesterday morning.
Goodbody upgraded the banana firm to buy from hold. Other gainers included Petroceltic which rose 6.9pc to €1.70 and Ryanair which advanced 2.7pc to €11.85.
In Europe, the Stoxx Europe 600 Index added 0.4pc to 385.59 at the close of trading, paring gains of as much as 1.2pc.
The equity gauge fell 1pc over the week. Greece's ASE Index rose 0.6pc yesterday, after earlier adding as much as 2.6pc as the European Central Bank increased the maximum amount of emergency funding available to Greek lenders. Benchmark indexes of Ireland and Italy posted the biggest advances in western-European markets.
The Stoxx 600 reached its lowest level since February on Monday as talks between Greece and its creditors deteriorated.
But with fears of contagion easing, the benchmark index of European equities reversed losses on Thursday. Greek stocks account for less than 0.1pc of the Stoxx 600.
"Everybody realises we're getting close to some sort of resolution," said Philippe Gijsels, chief strategy officer at BNP Paribas Fortis in Brussels.
"No compromise may mean exit or default, but you have some sort of resolution. Lots of people in the market are ready to buy the dip, and many are buying before the actual event. If you look at Greece, it is a small part of the Eurozone."