Thursday 21 September 2017

Greece sends stocks, currency lower

Aer Lingus shares fell
Aer Lingus shares fell
Independent.ie Newsdesk

Independent.ie Newsdesk

Fears that a Greek debt deal is slipping away sent European stock-index futures lower yesterday. Talks over Greece's debt ended yesterday at an impasse when the nation's government said it wouldn't accept euro-area proposals for it to stick to the terms of its bailout.

Here, the ISEQ index closed 0.3pc down at 5,692. The Stoxx Europe 600 Index slid 0.1pc to 376.55. Greece's ASE Index lost 3.8pc with Greek banks especially hard hit.

Aer Lingus shares closed 2.71pc lower at €2.15 each yesterday, well shy of IAG's €2.50 offer level, while shareholder Ryanair's own stock was up at €9.61 a share.

Aer Lingus managers will appear in front of the Oireachtas Transport Committee today, where the possible sale to Willie Walsh's IAG will be once again under scrutiny from law makers.

Ahead of its EGM next week Petroceltic shares were 2.50pc lower at €1.70 each yesterday, while its potential buyer, Dragon Oi,l was up 3.52pc at €7.77 a share. Dragon Oil pulled out of a potential deal with Petroceltic late last year, but could potentially come back into the frame.

Among shares moving on corporate news elsewhere, Royal Bank of Scotland Group dropped 1.2pc as Keefe Bruyette & Woods Inc. said the UK's state-controlled lender may have to set aside £10bn in additional conduct costs.

French telcos Altice and Bouygues rallied on reports of a possible tie-up, while beer giant SABMiller rose 1.9pc after a report that a consortium led by 3G Capital Partners is considering a bid for the brewer.

In currencies the euro fell for a second day against the dollar as the Greek talks broke, while the Russian ruble strengthened amid a shaky cease-fire in Ukraine.

Irish Independent

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