Aer Lingus dips as Ryanair 'blocked'
IRISH shares increased yesterday, more than reversing the drop experienced earlier in the week.
By the close in Dublin, the ISEQ Overall Index was up 1.3pc or 47.63 points to close the session at 3626.45.
The Dublin market largely rose on opening to finish in the black.
Of the major stocks, Aer Lingus fell 4.3pc to €1.28 after rival Ryanair announced that the European Commission would block its takeover bid. Ryanair's share price increased by 0.8pc to close at €5.71.
Oil exploration company Providence Resources was also down 0.6pc to €6.99 after it announced that it would delay controversial plans to drill for oil off Dalkey because the law is unclear.
Bookmakers Paddy Power was down 0.1pc to €61.50, while energy conglomerate DCC fell 0.2pc to end the trading day at €26.95.
On the other side of the board, packaging giant Smurfit Kappa rebounded from its fall on Monday by rising 4.3pc to €11.24.
Glanbia rebounded 2pc to €8.25 after the share had drifted in recent days from its high 0f €8.50 back to €8.10, while Irish drug firm Elan was up 5.3pc to close at €7.63.
Agri-services group Origin also enjoyed a positive day, with its share price rising 4.8pc to €4.78.
Elsewhere, European stocks rebounded and advanced as cost cuts at Barclays outweighed worse-than-expected earnings at Michelin.
The Stoxx Europe 600 Index added 0.5pc to 287.07 at the close of trading in London, after yesterday sliding 0.6pc.
National benchmark index rose in all 18 western-European markets.
France's CAC 40 and the UK's FTSE 100 both climbed 1pc. Germany's DAX added 0.4pc.
Barclays rose to an almost two-year high after saying that it will cut 3,700 jobs. Michelin led a gauge of European auto industry-related shares lower after reporting profit that fell short of analysts' estimates.
Finmeccanica dropped the most in 14 months after police arrested its chief executive officer as part of an investigation into bribery.
"Company A says things are going well and Company B says they are cautious," said Emmanuel Soupre, a fund at Neuflize Private Assets in Paris.
"We bounce from one to the other every day.
"We don't yet have a clear idea of guidance for 2013. That doesn't mean that the market can't hold up."
L'Oreal jumped 3.8pc to €112.05 after reporting that earnings increased 12pc in 2012.
The world's largest cosmetics maker said it will buy back €500m of shares in the first half of this year.
The company said it will grow faster than the beauty market in 2013.