Tuesday 26 September 2017

Elan is big loser on grim day in EU

Elan. Photo: Bloomberg News
Elan. Photo: Bloomberg News
Mark Keenan

Mark Keenan

WITH European debt concerns once again darkening performance in the world markets, the ISEQ Overall Index shed 1.93pc, or 60.53 points to 3,071.80.

A general souring of the outlook in Europe was led by a deteriorating position for Spain, with fears increasing that the country will need a full blown sovereign bailout.

Spanish debt borrowing hit an all-time high at 7.6pc for 10-year bonds and expectations increased that even more Spanish regions will follow Valencia in seeking bailouts from Madrid.

In Greece, inspectors descended on Athens from the ECB, EU and IMF to determine whether the country is addressing the terms of its bailout. The news is unlikely to be good, but Greece will likely get the money anyway -- given that it's needed to pay off a rash of European loans.

Germany, the Netherlands and Luxembourg were downgraded by Moody's from "stable" to "negative" although this had been expected and Deutsche Bank, Germany's largest bank, reported lower than expected profits.

The US Dow took a pounding on the back of Europe and was down 1.2pc by 5pm with the only good news of the day coming from better than expected manufacturing statistics in China.

On the ISEQ Overall Index the big loser of the day was Elan which received bad news about tests on its Alzheimer's drug Bapineuzuma which has apparently failed to improve symptoms of dementia.

The knockback saw its share price tumble 11.8pc to €9.79. In contrast, Ovoca Gold rose highest yesterday by percentage at 9.6pc to 14c, with two of its test locations in Russia apparently on track and some high grade intercepts coming through from early bulk samples.

Meanwhile, Ormonde Mining also lifted substantially by 6.25pc to 9c. Dragon Oil could not cash in on rising oil prices thanks to slower than expected progress at its wells in central Asia with sand ingress slowing up proceedings.

The stock fell by 4.5pc to €6.87. Elsewhere in oil, Petroneft shed 5.8pc to 8c. Providence rose 1.24pc to €8.35 as oil prices rose worldwide on the back of encouraging Chinese figures.

The same Chinese industry figures may have helped provide a lift for packaging specialist Smurfit Kappa, which jumped up 2.75pc to €5.60.

Among the day's losers were Glanbia, down 1.76pc to €6.10 as news came through of disappointing figures from dairy consumer products in the Nigerian market where the company has interests.

Elsewhere, the Stoxx Europe 600 slid by 0.5pc, the FTSE 100 lost 0.63pc, the German DAX fell by 0.45pc and the CAC 40 shed 0.87pc.

Not surprisingly, Spain's IBEX tumbled by 3.6pc.

Irish Independent

Also in Business