Friday 22 September 2017

Little change with good and bad news

Mark Keenan

Mark Keenan

MOST European markets fell slightly in a seesaw day during which investors reacted both positively -- to news that pro-austerity Greek conservatives appear to be getting the upper hand; and negatively -- following the deteriorating prospects for Spain's banking sector.

The latter is now looking like it will need more money spent to sort it out following the planned bailout of Bankia.

The overall result across Europe was an almost perfectly balanced effect in most markets with the Stoxx Europe 600 losing less than 0.1pc. The notable exception was Spain where Madrid-based shares crashed to their lowest in nine years.

At home, the ISEQ Overall Index rose to 3103.7, up 0.3pc, or 11.85 points. Over five days it has risen by 2.39pc.

Among the biggest movers were Donegal Creameries, which dropped 7.2pc to close at €3.20. The company is involved in a dispute with a local pensioner's legal battle for a right of way.

The sale of Donegal Creameries' Oatfield sweet factory for €5m has recently been halted by legal action from Ruth McKinney who has won the first round of a court battle with the Creameries which wants to continue using the factory yard as a right of way. McKinney is the daughter of Oatfield co-founder Ira McKinney.

Banks

Increasing coverage of Ireland's mortgage debt crisis and the steady successes of groups like New Beginnings affected the more exposed banks like Permanent TSB, with one of Ireland's largest mortgage books. It took a particular kicking yesterday plunging 12.85pc to just 3c while AIB shed 3pc to land at 6c.

Aminex, the oil company with interests in Egypt and Korea skipped up 11pc.

Datalex, the airline software group flew up 8.3pc to 65c following a generally positive interim management statement.

The pharma skills outsource group Icon gained 10.9pc to €17.28, making up ground it lost last week and taking it to a five day rise of 4.8pc.

Other movers included Ryanair, up 1.5pc to €4.14 -- most likely based on a UK court appeal against the sale of Stansted Airport in which the airline has key operations.

Kenmare Resources rose 2.5pc to 51c. Independent Newspapers added 4.2pc to 27c, and IFG advanced 2.34pc to €1.31.

Elsewhere, Germany's DAX dropped 0.3pc while the Paris CAC fell 0.2pc. London's FTSE index was little changed.

The market was led by Rio Tinto and BHP Billiton which both advanced as copper climbed on news of shrinking stocks in China.

Meanwhile, news began to filter through that China's biggest lenders might fall short of loan targets for the first time in at least seven years.

Irish Independent

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