Saturday 21 October 2017

Kenmare in surprise 15.8pc jump

Donal O'Donovan

Donal O'Donovan

KENMARE Resources was the main Irish mover as many markets reopened for the first time after the Christmas break yesterday.

Shares in the London-listed, Irish-based mining company surged 15.8pc on the day to 31.36 pence each -- with no specific news or event to drive the rally.

A source involved with the company said last night that no specific company news, either announced or imminent, could explain the rapid rise.

Mining stocks in general were stronger yesterday and the source said an investor note published by Davy Stockbrokers on December 20 valuing Kenmare at 45 pence per share is the most likely reason for last night's sharp increase.

Markets have been effectively or actually closed since that note was published.

Davy raised the target for the shares after Kenmare rival Titanium Resources Group said it had signed contracts for 2011 at prices 19pc to 25pc above 2010 levels.

The general strength of mining stocks yesterday reflects widespread optimism for industrial growth in 2011.

Closer to home Bank of Ireland was up a hefty 7.49pc to 37.3 cent per share. AIB closed up 1.27pc at 31.8 cent a share as that bank prepares for effective nationalisation and a move of remaining shares to the junior Enterprise Securities Market on January 26.



Devices

Other gainers in Ireland were DCC, which closed up 2.2pc at €23.51 and Aer Lingus up close to 2pc at €1.12 in spite of travel woes over the holiday period.

The ISEQ index of Irish shares closed flat at 2886 on the first close after the break.

In the UK the FTSE 100 Index also closed unchanged.

Among the main movers was medical devices maker Smith & Nephew fell 2pc to 672 pence per share after US regulators warned of violation of manufacturing and testing rules.

Copper jumped to a record on the London Metal Exchange, catching up with gains in other metals markets as trading resumed after a two-day holiday.

In contrast to the rise in Aer Lingus shares UK rival British Airways fell 1.2pc to 272.5 pence per share after as many as 1.2 million airline customers may have been affected by almost 8,000 flight cancellations after snowstorms in the US closed airports over Christmas.

In the US, the Dow Jones industrial average was up 0.2pc around midday in New York.

European markets were generally stronger. The Paris CAC index was up 0.8pc while the Frankfurt DAX was up 0.34pc.

The MSCI World Index of shares in 24 developed nations was up 0.5pc to 1,281.24 yesterday, approaching its closing level of 1,283.14 on September 12, 2008 -- before the Lehman's bankruptcy.

The MSCI World Index is now up 9.7pc so far this year.

Irish Independent

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