ISEQ joins Europe-wide rebound
Published 27/08/2010 | 05:00
IRISH shares rose yesterday from the previous session's 52-week low, with all 18 stock exchanges in western Europe posting gains as rising profits from Credit Agricole to L'Oreal and a better-than-estimated report on the US jobs market eased concerns.
The ISEQ advanced 25.81 points, or 1pc, to 2661.74 as exploration stocks posted gains. The Stoxx Europe 600 Index gained 0.9pc to 249.65, erasing the previous day's 0.8pc slump. The UK's FTSE 100 rose 0.9pc, France's CAC rose 0.7pc and Germany's DAX gained 0.2pc.
Among the biggest gainers in Dublin were Kenmare Resources, which closed up 8.3pc at 21c after the miner swung to profit and said it was on track to boost production at its titanium mine in Mozambique by 50pc. Other exploration stocks also did well with Petroceltic closing up 14.3pc, Ormonde Mining advancing 8.9pc and oil giant Tullow closing up 2.3pc. Independent News & Media closed up 6.7pc at 66.5c on hopes the newspaper publisher has turned a corner.
Bookmaker Paddy Power advanced 2pc to €27.20 a day after publishing results as rival William Hill reported better-than-expected profits. Building materials company CRH scrapped back a small 0.8pc rise to close at €12.05 after Tuesday's profit warning and price plunge.
McInerney Holdings, however, asked the stock exchange to suspend the listing of its shares and announced that it would ask the High Court to appoint an interim examiner.
Investors took heart as France's largest bank, Credit Agricole, reported post-tax profit of €379m -- up 89pc. L'Oreal, the world's biggest cosmetics maker, jumped 3.9pc as earnings rose 21pc. Infineon Technologies rose 5.2pc on rumours Intel is close to a deal to buy its wireless business.
"It's the strength of this economic recovery that's under question and there are signs of hope," said Richard Hunter, the head of equities at Hargreaves Lansdown Stockbrokers in London. "We've had a strong set of earnings and concerns are now around the third quarter."
Stocks in Europe rose to the highest level of the day after applications for jobless benefits in the US fell more than forecast, easing concerns the labour market was rapidly deteriorating. Initial jobless claims dropped by 31,000 to 473,000 last week -- the first decline in a month -- Labour Department figures showed in Washington.
In New York, stocks swung between gains and losses. Guess fell 12pc after the clothes firm's forecast trailed estimates. Cisco Systems and 3M lost most in the Dow Jones Industrial Average.
Analysts said some investors were holding off ahead of Fed Chairman Ben Bernanke's discussion on the outlook for the economy at the central bank's annual symposium in Jackson Hole, Wyoming, today.