Glanbia is big winner in shares rise
IRISH shares rose yesterday, snapping a four-day losing streak, as big gains in the food sector pushed the market higher.
By the close in Dublin the ISEQ Overall Index had added 0.61pc, or 20.09 points, to close at 3,333.06.
The market began strongly but veered lower, only for a late rally to push it up to its highest point of the day.
Glanbia was the big winner by the time stumps had been drawn. The shares surged 5.99pc to €8.14 after Glanbia Co-op gave up its majority stake in the food group. The co-op placed 3pc of its holding, reducing its stake to 48pc. That will eventually fall to 41pc.
The move is seen as making it easier for the business to attract more institutional investors.
Glanbia was part of a broad-based gain among food stocks yesterday.
Aryzta added 1.9pc to close at €39, while drinks maker C&C jumped 2.5pc to end the session at €4.53.
Few stocks made notable moves down, although Paddy Power dipped 0.47pc to hit €61.01.
Elsewhere, European stocks rose for the first time in four days as US President Barack Obama changed his position on tax increases, leading to optimism that Democrats and Republicans will agree on a compromise budget.
The Stoxx Europe 600 Index added 0.5pc, while national benchmark indices gained in every Western European market except Denmark and Greece. The UK's FTSE 100 gained 0.4pc and Germany's DAX added 0.6pc. France's CAC 40 rose 0.3pc.
"It looks like the US budget talks are getting better and better," said Pierre Mouton, a portfolio manager at Notz Stucki in Geneva. "It's quite positive and the market's reaction is linked to that."
A gauge of commodity producers posted the biggest gain of the 19 industry groups on the Stoxx 600. BHP Billiton, the world's largest mining company, climbed 1.2pc. Rio Tinto Group, the second biggest, advanced 2.8pc.
Santander, Spain's largest lender, added 2.2pc and UBS increased 1.9pc. Banca Monte dei Paschi di Siena rallied 3pc. A gauge of banking shares contributed the most to the Stoxx 600's advance.
Imagination Technologies jumped 7.1pc.
In London, Rolls-Royce added 2.4pc. Europe's largest maker of engines for commercial aircraft and ships signed a $1bn (€756m) contract with Japan's Skymark Airlines.
Pearson increased 2.6pc. Exane said the owner of the 'Financial Times' is on a "cusp of a transformation" driven by technological advantage.