Lack of G-20 commitment hits trading
IRISH shares fell back yesterday, as the lack of a strong statement on the eurozone crisis from the weekend's Group of 20 meeting hit markets across the continent.
By the close of trading in Dublin, the ISEQ Overall Index had fallen 0.28pc, or 8.94 points, to close at 3,191.31.
G-20 officials told the euro area's political leaders to provide more financial firepower before they'll consider lending their support, putting the onus on Germany, already the biggest contributor to the bailouts.
Ryanair fell the most of the major stocks yesterday, dropping 1.41pc to €4.04. Merrion Stockbrokers downgraded the airline to "sell", citing an inability to recoup higher input costs through fare increases.
Conglomerate DCC fell 0.51pc to €19.40 while construction materials giant CRH lost 0.4pc before it releases its annual results today. Those losses guaranteed the Irish market would end the day lower but a host of commodity businesses surged.
Providence Resources, which is focused on exploring areas around Ireland surged 22.46pc to €4.20. The company reported strong drilling results from its Barryroe field.
Aminex jumped 20.33pc after discovering gas at its Ntorya-1 well in Tanzania.
Kerry Group and Glanbia both hit their highest ever closing prices. Kerry closed up 1.43pc at €32. Glanbia finished yesterday up 1.18pc at €5.56. The company is expected to announce strong annual results tomorrow.
Insulation supplier Kingspan rose 0.88pc to €8.05. The company beat expectations with their annual results.
Elsewhere, European stocks declined, extending last week's retreat, as the lack of a strong G20 commitment hit trading.
National benchmark indices fell in 13 of the 17 western-European markets that were open yesterday. France's CAC 40 Index fell 0.7pc, Germany's DAX Index lost 0.2pc and the UK's FTSE 100 Index slid 0.3pc. The benchmark Stoxx Europe 600 Index slid 0.3pc.
"I don't think the market really anticipated the G-20 would come up with anything different," said Jeremy Batstone-Carr, head of research at Charles Stanley in London. "The fact of that matter is -- as it stands -- the firewall is still insufficient. The higher oil price is another uncertainty in investors' minds."
HSBC fell 3.7pc, the biggest contribution to the Stoxx 600's retreat, after reporting a 15pc increase in pretax profit to $21.9bn (€16bn) last year, missing estimates.
Maersk slid 3.7pc after the shipping company posted a 43pc drop in 2011 profit to 15.2bn kroner (€2bn).
Air France-KLM Group dropped 2.5pc as crude oil traded near a nine-month high of $109.77 a barrel in New York. Deutsche Lufthansa lost 2.4pc.