Global markets rise after Greece seeks €30bn bailout
IT was Zeus that Greek mythology says destroyed mankind in a flood after tiring of its rapaciousness. Luckily, he's not around to see the financial mess the nation is in now.
With the Greek government finally capitulating and asking for a €30bn bailout from the other Eurozone members, investors in European stocks at least breathed a sigh of relief yesterday, sending major indices into the black.
The ISEQ Overall Index jumped 2.84pc, or 95.5 points, to end the session at 3,460.49, considerably helped along by a significant boost to CRH.
A number of other stocks also fared reasonably well.
Shares in CRH soared during the day after it emerged that US-based investment adviser Capital Research and Management boosted its stake in the Irish building materials to 13.4pc.
Two Citigroup analysts also said CRH could lead a fresh wave of consolidation in the sector once the US economy in particular picks up real steam once again. Shares in CRH closed up over 6.4pc, or €1.30, in Dublin, at €21.50 on higher than average volume.
Shares in the two main banks see-sawed during the day, with Bank of Ireland having opened down nearly 2.8pc. News of the Greece bailout provided a fillip however, with the stock closing down just 1 cent, or 0.5pc at €1.80.
Allied Irish Banks veered the other way, having performed strongly, gaining as much as 5.4pc by mid-afternoon before closing effectively flat at €1.50.
Insulation maker Kingspan also did well, rising 3.1pc, or 25 cent, to enter the weekend at €7.17.
Cardboard box maker Smurfit-Kappa climbed nearly 2.9pc, or 25 cent, to €7.20. National benchmark indexes advanced all 18 western European markets, except Greece and Iceland. The UK's FTSE-100 climbed 1pc, or over 58 points to 5,724. Germany's DAX rose 1.5pc to 6,259.33, while France's CAC-40 rose 0.7pc to 3,951.30.
Adidas raised its earnings forecast, Volvo posted an unexpected profit and business confidence in Germany improved. Adidas climbed 3.9pc to €44.50 and Volvo added 10pc to 90 kronor, the biggest jump since February 2009. Renault, which owns 20pc of Volvo, surged 6.9pc to €36.72.
UK home builder Taylor Wimpey soared 9.8pc to 44p. Purchases of new homes in the US surged in March.
Ericsson, the world's largest maker of wireless networks, climbed 10pc to 88 kronor, the highest level since 2007, after reporting that first-quarter North American sales doubled.