Irish shares break three-day decline
Published 20/07/2011 | 05:00
IRISH shares rose yesterday, snapping a three-day losing streak, after positive earnings outside of Ireland saw improved sentiment across trading floors.
By the close of trading the ISEQ index had risen 0.52pc, or 14.67 points, to close at 2,840.42.
The index entered positive territory early and stayed there, peaking at 2,860 during the session before falling back.
CRH was the big winner on the day, gaining 2.57pc to reach €13.95 recovering slightly from the four-month low it hit on Monday.
Aer Lingus was another stock to recover some of its Monday losses, gaining 2.94pc to reach 70c by the end of the session.
Ryanair also added 1.73pc to top €3.24. The low fares airline was boosted by the news that the British Airports Authority would be forced to sell Stansted Airport.
Food stocks had a difficult day for once, with several of the main players in the sector posting losses during the session.
Kerry Group slipped back 2.98pc to €28.62, while Glanbia fell 0.21pc to €4.72. Aryzta struggled as well, closing down 0.22pc at €36.80.
The sale of Superquinn is expected to see losses imposed on a number of its suppliers as they are unsecured creditors and behind the banks in the queue for any repayments.
Elsewhere, European stocks rebounded from a seven-month low, as companies from Novartis to IBM reported earnings that beat estimates.
National benchmark indices gained in all of the 18 western European markets. The UK's FTSE 100 rose 0.7pc. France's CAC 40 and Germany's DAX advanced 1.2pc while the Stoxx Europe 600 added 0.8pc.
"Earnings are not too bad at all," said Markus Huber, head of German sales trading at ETX Capital in London. "It is doubtful that even if the earnings season continues to go well stocks can break out to the upside as long as uncertainties like the potential default of Greece and the US debt ceiling is not solved.
"In the short term, however, stocks which beat estimates and raise forecasts should perform well."
IBM reported revenue that beat analysts' estimates and boosted its full-year profit forecast late Monday as firms bought more software and equipment. Some 31 of the 36 companies in the Standard & Poor's 500 Index that have reported results since July 11 topped per-share profit projections.
Novartis, the second-biggest stock in the Stoxx 600 by weighting, climbed 3.2pc, as earnings excluding some costs climbed to $3.56bn (€2.51bn).
Lloyds, the UK's biggest mortgage lender, rallied 4.3pc and Barclays gained 1.9pc.
Basic-materials shares led gains in the FTSE 100. Kazakhmys, Kazakhstan's biggest copper producer, rose 3.2pc and Cairn climbed 3pc. Vedanta advanced 2.7pc.