Saturday 21 October 2017

Iseq down as €1bn wiped off Aryzta value

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)

Sean Duffy

Investors responded emphatically to the latest round of bad news from Irish-Swiss food company Aryzta.

The food company saw its share value drop by almost a third, after the company said revenues fell by almost a third, over the course of a dramatic day that wiped €1.1bn off the company's value.

The news weighed on the Dublin's Iseq index, which closed down by 1.56pc - or 102.66 points - at 6493.76.

Shares in gambling giant Paddy Power Betfair were also down 4.3pc as investors continued to sell the stock after the announcement this week that revenues had been hit by customer winnings.

Travel provider Hostelworld fell by 7.4pc, while shares in Independent News and Media traded down 3.1pc.

Mining and exploration stocks were the biggest winners of the day.

On European markets, the DAX was up 0.4pc, the CAC rose 0.2pc in France, while Spain's Ibex gained almost 1pc. London's benchmark FTSE 100 was flat over the course of the day.

The pound and gilts fell as investors bet a Supreme Court loss for UK Prime Minister Theresa May won't derail the start of a process to exit the European Union.

Wall Street edged higher, led by technology and materials stocks, as the corporate earnings season kicked into high gear.

Investors are also seeking more clarity on President Donald Trump's economic policies.

"We are now in a phase where the policies need to come to fruition to justify the move we have seen in the post-election period," said Bill Northey, chief investment officer at Private Client Group of US Bank.

"I believe that the market's focus has shifted a bit back to fundamentals and the fourth-quarter earnings season, which at this point has started off on a reasonably positive note."

Additional reporting by Reuters

Irish Independent

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