ISEQ bucks European slump
WHILE the rest of Europe slumped in response to poor company results yesterday, Irish stocks stubbornly bucked the trend. The ISEQ Overall Index closed up 6.98 points, or 0.17pc, to 4,123.54 at the finish of business.
Ormonde Mining led the gainers – up 15pc to 6c – tailed by INM, up 5pc to 7c. It was a mixed day across industries – in the food sector, Total Produce rose 2pc to 71c but Fyffes and Glanbia both dropped, down 3pc to 68c and 2pc to €10.10 respectively.
Packaging giant Smurfit Kappa's share price rose 1pc to €14.59 after the company announced it had successfully refinanced its senior credit facility, upsized because of demand. Goodbody stockbrokers said the company's deleveraging programme would save it as much as €100m this year.
The biggest losses of the day went to oil and gas company Providence, down 11pc to €4.81. A report said yesterday that reserves at its Barryroe site could generate as much as $3bn, though the actual extractable amount will be worth less than this. The mining company's share price has taken a hit this week after it announced on Monday that it was closing down its exploratory well at Dunquin off the south west coast.
In Europe, stocks fell from an eight-week high as a number of large companies reported earnings that fell below analyst estimates.
National benchmark indices fell in 14 of the 18 western European markets. Germany's DAX dropped 1pc, the UK's FTSE 100 slid 0.5pc and France's CAC 40 lost 0.2pc. The composite Stoxx Europe 600 Index dropped 0.5pc to 299.63 at the close of trading. Analysts have reduced their estimates for full-year earnings at the gauge's companies by 7.7pc since the start of the year.
"Expectations for European earnings have been falling as confidence has ebbed throughout the eurozone," said Seven Investment Management's Justin Urquhart Stewart. "Although economic growth expectations are improving somewhat for next year, these are not being translated into either current corporate results or corporate outlooks."