ISEQ rebound continues from start
Published 16/08/2011 | 05:00
IRISH shares rose for a third day yesterday as traders continued to sense buying opportunities after the carnage of the last fortnight.
By the close of trading the ISEQ Overall Index was up 1.14pc, or 28.80 points, at 2,549.24. The index moved higher from the opening on the back of overnight rises in Asia, and stayed there for the rest of the session.
Independent News & Media had a strong day, gaining some 9.26pc to close at 30c. The company reports interim results next week.
Food stocks started the week strongly, with most of the sector gaining ground.
Cider maker C&C rose 2.5pc to close at €3.24.
Glanbia stormed back, jumping 5pc exactly to close at €4.20. Kerry Group, which reports interim results today, ended yesterday up 2.94pc at €26.80. Commodity stocks were the main laggards at the start of the week, with oil companies in particular enduring a difficult Monday.
Petroceltic (down 8.33pc), Petroneft (down 4.37pc), Providence Resources (down 4.76pc), and Ormonde Mining (off 5.26pc) were four of the top five laggards.
The buying spree was continued overseas, with the Stoxx Europe 600 index extending its biggest three-day rally in 15 months.
National benchmark indices in Europe climbed in all 14 western European markets that were open. Germany's DAX rose 0.4pc, the UK's FTSE 100 gained 0.6pc and France's CAC 40 increased 0.8pc. Italy, Luxembourg, Austria and Greece were closed for a holiday.
"Our central scenario is that we are not going to face a double dip," said Richard Lacaille, chief investment officer at Boston-based State Street Global Advisors. "Valuation indicators are showing that markets are becoming more attractive."
Japan's GDP shrank at an annualised 1.3pc in the three months ended June 30. Economists forecasted a 2.5pc drop.
Nokia jumped 9.1pc after Google agreed to buy Motorola Mobility, gaining wireless patents and entering the hardware business. That was the largest gain since January 2010.
Zurich Financial Services rallied 3.6pc after both Credit Suisse and Keefe, Bruyette & Woods raised their recommendations to 'outperform'. The stock had tumbled 29pc this year.
Swiss exporters advanced as the franc weakened against the euro, heading for its biggest three-day decline since the European currency's 1999 debut, amid speculation Switzerland will take further action to counter recent gains. The 'SonntagsZeitung' newspaper said the government and the central bank are in "intense" talks over setting a target for their currency.