Business World

Thursday 21 August 2014

Optimistic BoI and CRH boost ISEQ

Thomas Molloy

Published 14/11/2012 | 05:00

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IRISH shares rose, led higher by companies such as CRH and Bank of Ireland – which were more optimistic about the outlook for profit than many investors had expected.

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The ISEQ closed up 23.09 points, or 0.7pc, to 3291.83. Building materials company CRH advanced 0.5pc to €14.27 after it said that cost-saving measures were having an effect and forecast that the destruction caused by Hurricane Sandy will probably result in significant reconstruction work.

Bank of Ireland advanced 1.1pc to 9.4 cents after the bank sold bonds and issued an upbeat trading statement.

Other shares to post gains included oil company Fastnet, advancing 2.9pc to 36 cents following reports the previous days of new oil finds in Irish waters.

ICON led declines after Bruce Given sold some of his holding. Shares in the clinical trials company fell 3pc to €20.85.

Aer Lingus was down 1pc at €1.04 on fears of strike action, while Glanbia slipped 0.5pc to €8.01 as 7,800 shareholders voted on a plan to reduce the power of the co-op.

Elsewhere, European stocks climbed, halting a four-day decline for the benchmark Stoxx Europe 600 Index, as yields on benchmark Spanish bonds slipped amid speculation that Spain will soon ask for a bailout.

National benchmark indices gained in 14 of 18 western-European markets yesterday. France's CAC 40 rose 0.6pc, while the UK's FTSE 100 advanced 0.3pc. Germany's DAX climbed less than 0.1pc.

Jumped

Italian and Spanish lenders rallied as Intesa Sanpaolo jumped 5.2pc after reporting that operating profit surged in the third quarter. Energy giant EON slumped 12pc after Germany's biggest utility lowered its earnings forecast for 2013. It was the company's biggest fall in 20 years.

Vodafone slid 2.5pc after the world's second-largest mobile-phone company took a $9.4bn (€7.4bn) writedown for its operations in Spain and Italy.

The Stoxx 600 rose 0.4pc to 270.6 at the close.

Sonova Holding surged 8.5pc, its biggest rally in a year, after the Swiss provider of hearing products reported first-half profits that beat estimates.

ITV advanced 9pc after the UK's biggest terrestrial commercial broadcaster said group external revenue rose 4pc in the first nine months.

Pirelli dropped 2.8pc as Europe's third-largest tyre maker lowered its forecast for revenue in 2012 by €250m to €6.15bn.

K+S sank 4.5pc as Europe's largest potash maker said it expects sales and profit in 2012 to only reach the bottom of its targeted range.

Mondi declined 2.4pc after reports said Barclays sold 19.3 million shares in the largest maker of office paper and industrial bags in Europe on behalf of a client.

Irish Independent

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