Irish shares down as Dragon falls 4.7pc while European indexes rise
IRISH shares inched downwards yesterday as Dragon Oil said production would be lower than previously forecast due to technical problems with a pipeline.
The ISEQ benchmark slipped 10.69 points, or 0.4pc, to 2665.04 as Dragon Oil tumbled. The eighth biggest company on the index slid 4.7pc to €5.05 after warning of "infrastructure bottlenecks".
Dragon is building a pipeline and upgrading its onshore processing facility to end capacity constraints but delays will trim 2010 average gross field production growth to 5pc, chief executive Abdul-Jaleel Al-Khalifa said.
There was better news for PetroNeft which extended the previous session's gains by jumping another 7.3pc to close at 59 cent.
The rise, following a share placing on Tuesday, secured the oil company's position as the stock exchange's best performing stock.
Shares elsewhere in Europe advanced as companies from Peugeot Citroen to BASF reported earnings that beat analysts' estimates.
The Stoxx 600 Index closed up 0.3pc in London after swinging between gains and losses at least nine times. National benchmark indexes increased in 15 of the 18 western European markets. The FTSE 100, the DAX and CAC 40 all rose at least 0.4pc.
Peugeot climbed 0.9pc as the carmaker said quarterly revenue grew and raised its full-year outlook.
BASF rose 2.6pc after the world's biggest chemicals maker said recovering markets helped lift its third-quarter profit beyond analysts' estimates.
Stoxx 600 rally
The Stoxx 600 has rallied 2.5pc this month amid speculation that the policymakers at the US Federal Reserve will announce another round of asset purchases at their November meeting in a bid to jump start economic growth.
"The outlook for 2011 is not brilliant, but is not bad either," said Philipp Musil, who helps oversee about $10bn at Semper Constantia Privatbank in Vienna.
"I hope the market won't be dissatisfied with the Fed's quantitative easing programme in November, but the market is still in good shape."
Quantitative easing remained the markets' main preoccupation. The dollar hit a 15-year low versus the yen in New York yesterday amid speculation the Federal Reserve will pump more cash into the economy.
"It's quantitative easing and the dollar debasement that's the predominant story," said Jeremy Stretch, executive director of foreign-exchange strategy at CIBC World Markets in London.
Boeing and Yahoo helped lead stocks higher across the Atlantic after earnings beat estimates, while energy shares and oil rose.
The Standard & Poor's 500 Index had increased 1.1pc in early afternoon trading after slumping 1.6pc the previous day. Oil rebounded from its biggest loss in eight months, returning above $81 a barrel.
The slump in the US currency came amid speculation the Fed's Beige Book survey on regional business may signal that central bankers believe further measures are needed to support growth.
Boeing and Yahoo joined about 84pc of S&P 500 companies that have topped analysts' per-share earnings projections since October 7, bolstering optimism that corporate profits are improving even as the economic recovery slows.