Business World

Sunday 24 September 2017

Oil firm slump sparks share fall

Thomas Molloy

Thomas Molloy

IRISH shares fell for the third day in tandem with some European stocks, which were hit as US manufacturing unexpectedly slumped.

The ISEQ closed down 23.67 points, or 0.6pc, at 4048.71 points as oil companies slumped. Fastnet closed down 11.7pc at 21.2 cents as investors fretted about oil companies in the wake of disappointing news from Providence and Tullow.

Providence extended Monday's steep decline, shedding another 2.7pc to close at €5.40. C&C slipped 3.7pc as the heatwave ended.

Ryanair slumped 3pc to €7.03 as the airline said it would sell its stake in Aer Lingus if a bidder emerged. Analysts said the promise smacked of desperation. Aer Lingus rose on the news, advancing 1.8pc to €1.68.

Other shares to post big gains were mortgage lender Permanent TSB which added 3.9pc to close at 5.4 cents and Allied Irish which added 3.7pc to close at 2.8 cents following news that house prices are rising at their fastest rate since 2007 in the capital.

Independent News & Media enjoyed the biggest gains, closing up 6.2pc at 6.9c to extend the publisher's record as the best performing stock on the exchange.

In London, Tullow Oil slumped 6.6pc to 1,041 pence after failing to find commercial quantities of crude oil or gas at two wells off the coasts of Mozambique and French Guiana.

Elsewhere in Europe, Swiss pump maker Sulzer plunged the most since October 2008 after lowering its forecast on full-year profitability.

KPN jumped to its highest price in more than five months after agreeing to sell its German mobile-phone business to Telefonica.

Vivendi climbed the most in eight weeks after saying it has held talks to sell a 53pc stake in Maroc Telecom to Emirates Telecommunications.

The Stoxx Europe 600 Index dropped 0.3pc to 299.44 at the close of trading, erasing an earlier gain of as much as 0.5pc.

National benchmark indexes rose in 10 of the 18 western-European markets. France's CAC 40 and the UK's FTSE 100 slipped 0.4pc, while Germany's DAX fell 0.2pc.

Irish Independent

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