Bond sale provides boost for ISEQ
IRISH shares gained amid relief that the country is still able to raise money on the international markets.
News of yesterday's bond sale and similar sales in Spain and Greece also helped Europe's smaller markets end in positive territory, although the continent's three larger exchanges closed lower.
The ISEQ added 15.89 points, or 0.6pc, to close at 2750.1 points as Allied Irish and the country's two airlines advanced. Boundary Capital, which said in July that it plans to cancel its listing on exchanges in London and Dublin because the costs "are not justified", was finally removed from the exchange.
Allied Irish closed up 3.3pc at 63c as shares in M&T Bank surged amid reports the US bank, in which AIB holds a stake, may give up a majority stake to Banco Santander through a merger with the Spanish lender's US unit. The US and Spanish banks are in informal talks with the US Federal Reserve to gauge how such a deal would be received, and expect to hear back within two weeks, Bloomberg reported.
Shares in Aer Lingus advanced 2pc to €1.02 while shares in Ryanair advanced 1.3pc to €3.90 as the International Air Transport Association tripled its forecast for airline industry profits this year on high demand. "We are upgrading again our global profit forecast for the world's airlines," said IATA boss Giovanni Bisignani.
TVC Holdings rose 3.9pc to 54c as AIB said it had a 13pc stake, while clinical testing company Icon fell 5.8pc after director Margaret Weiss sold 8,800 shares. Travel software company Datalex surged 25pc as billionaire investor Dermot Desmond's investment vehicle IIU said it owns more than 20pc of the Howth-based company.
Elsewhere in Europe, stocks trended downwards as selloffs in Nokia and Deutsche Bank overshadowed the good news from Ireland, Spain and Greece. The benchmark Stoxx 600 slid 0.5pc in London, paring Monday's 1.3pc rally. That left the gauge 2.6pc below its high for 2010 in April amid conflicting reports about the strength of the economic recovery and concern about the fiscal health of some European nations.
National benchmark indexes fell in eight of the 18 western European markets. France's CAC 40 fell 0.1pc, the UK's FTSE 100 dropped 0.5pc and Germany's DAX Index lost 0.3pc.
Nokia lost 4.5pc amid reports the world's biggest maker of mobile phones is delaying shipment of the N8, its newest flagship smartphone. Nokia denied the reports.
Deutsche Bank lost 4.5pc after Germany's largest bank said third-quarter pre-tax income for its corporate banking and securities division may be "substantially below" last year's level.
Safran rallied 5.8pc after the French maker of aerospace engines and equipment was upgraded to "buy" from "neutral" at Merrill Lynch.