World

Monday 28 July 2014

Markets take a breather as investors track G20 talks

Colm Kelpie

Published 16/02/2013|04:00

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IRISH shares fell yesterday amid reports from one of the ECB's governing council members that the promissory note deal would be reviewed.

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By the close in Dublin, the ISEQ Overall Index slipped 0.46pc or 17.07 points to close the session at 3663.57.

The Dublin market fell throughout the morning as head of the German Bundesbank Jens Weidmann appeared to cast doubt over the promissory note agreement struck last week, stating the ECB has to make sure the transaction conforms with the Euro bloc's rules.

The Department of Finance moved to avoid investor fears by stating that they were not concerned by the comments.

The laggards in the Dublin market included food ingredients company Kerry Group, which slipped 0.47pc to close the day at €40.11, while no frills airline Ryanair fell 0.76pc to €5.71.

Irish drug development firm Merrion Pharmaceuticals fell 14pc to €0.43 while Irish aggregates giant CRH was down 2pc to €16.10.

The winners included packaging giant Smurfit Kappa, which rose 1.1pc to €11.35 and builders providers Grafton Group, up 1.5pc to €4.79.

It was also a good day for bookmakers Paddy Power, which increased by 2pc to close the trading day at €64.50.

Elsewhere, European stocks were little changed as companies from French multinational holding company PPR to Norwegian Oil services company Aker Solutions reported earnings, and finance ministers and central bankers from the Group of 20 nations met in Moscow.

The Stoxx Europe 600 Index slipped 0.2pc at the close of trade in London.

National benchmark indexes rose in eight of the 18 western- European markets. France's CAC 40 slipped 0.3pc, while the UK's FTSE 100 was little changed. Germany's DAX fell 0.5pc.

"After reaching the highs we have seen for European and US markets, it seems that we're due for a period of digestion where politics begin to bounce back to the centre of attention," said John Plassard, vice president at Mirabaud Securities in Geneva.

"Investors are watching the G-20 meeting in Moscow amid recent talks of a currency war."

Eni rose 2.1pc to €17.69. Italy's biggest oil company proposed a 2012 dividend of €1.08 a share, up from €1.04 the previous year, even as Eni reported a 3.6pc decline in fourth-quarter adjusted net income to €1.52bn.

Irish Independent

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