Bank gains offset by falls in Ryanair and Elan shares
A photographer leans over the balcony as he takes pictures of the DAX board at the Frankfurt stock exchange yesterday. European shares briefly turned negative in afternoon trading after mixed US economic data, with weaker financial stocks putting pressure on the market.
Thursday November 26 2009
THE ISEQ was little changed yesterday as gains in the banks were offset by declines in Ryanair and Elan. Stocks indices elsewhere generally rose as economic news continued to suggest the world economy is improving.
The ISEQ closed down 9.54 points, or 0.3pc, at 2873.2 points. Seventeen stocks gained, 22 fell and 17 were unchanged.
Allied Irish Banks and Bank of Ireland both advanced after their chief executives gave upbeat presentations to a Dail committee. Allied Irish closed up 5.1c, or 3pc, at €1.73 after chief executive Eugene Sheehy said the lender would like to keep its Polish unit Bank Zachodni because it is generating deposits.
Bank of Ireland gained 3.6c, or 2.2pc, at €1.71 after chief executive Richie Boucher said a sale of shares this year is "highly unlikely".
Ryanair closed down 2c, or 0.7pc, at €2.83 amid concern the no-frills airline has not settled its future growth plans.
Also, Elan slid 14.8c, or 3.4pc, down to €4.16.
UK stocks advanced after Britain's economy shrank less than previously estimated in the third quarter. The benchmark FTSE 100 Index gained 40.85, or 0.8pc, to 5,364.81. Elsewhere in Europe, stocks advanced in 13 of the 18 western European markets after news that US home sales rebounded more than forecast.
Many stocks pared their gains in late trading as Dubai World, a state-owned holding company struggling with $59bn of liabilities, said it will ask all creditors for a "standstill agreement" as it negotiates to extend its debt maturities.
Stocks "have consolidated near their recent highs after opening higher on the back of firmer commodity prices", said markets analyst Michael Hewson at CMC Markets based in London." With the US Thanksgiving holiday tomorrow, and little else in the way of US and UK data this week, it is difficult to see what new factors could move this market as we head into the latter part of the week," said Mr Hewson.
Compass Group, the world's largest catering company, added 6.1pc after saying full-year profit rose by a third as cost cuts offset a decline in UK sales.
Vivendi climbed 4.2pc after the owner of the world's biggest music company was raised to "outperform" from "underperform" at Exane.
Financiere Richemont jumped 5.8pc after the world's biggest jewellery-maker was raised to "outperform" from "neutral" at Credit Suisse Group, which said sales had reached "an inflection point".
Greek banks Piraeus Bank sank 7.1pc and Alpha Bank dropped 4.6pc after the president of the Hellenic Banking Association said rumours of the impact on Greek banks of the withdrawal of extraordinary measures provided by the ECB are "at the least exaggerated".
- THOMAS MOLLOY
Irish Independent
