European markets respond with big gains as Brexit fears ease
Irish shares snapped their streak of losses yesterday, as fears that Britain may leave the European Union appeared to recede after a tumultuous week.
By the close in Dublin the ISEQ Overall Index had jumped 1.56pc, or 92.19 points, to close at 5,991.51.
The market surged from the opening and settled in positive territory for the rest of the session.
The gain was only the ISEQ's third positive day in the past three weeks, as worries that British voters may back a Brexit have increased sharply. The referendum on whether the UK should leave the EU takes place next Thursday.
Bank of Ireland was the big winner on the day, surging 10.05pc to 24c. That was the biggest percentage gain by the lender in at least three years. Analysts at investment house AlphaValue upgraded their rating on the stock to "buy" and slapped a target price of 29c on the share.
Permanent TSB enjoyed a strong day as well, adding 5.72pc to close at €1.96. Major stocks rebounded across the market. Ryanair added 2.56pc to close at €12.82, while CRH jumped 1.36pc to finish the week at €25.39.
Paper and packaging firm Smurfit Kappa rallied 1.94pc to reach €22.02.
Overall, more than four stocks rose for every one that fell.
Around Europe, markets enjoyed a strong end to the week. The FTSE 100 Index in London rose 1.2pc, while the CAC 40 in Paris increased 1pc. Frankfurt's Dax Index climbed 0.9 and the Stoxx Europe 600 Index ended yesterday 1.4pc higher.
"Brexit fear is starting to ease up a little, and the market was a little oversold," said Thorsten Engelmann, a trader at Equinet Bank in Frankfurt.
"Even if Brexit should happen, the large declines in recent days mean that enough concern is still priced in."