Paddy Power, Glanbia help market to claw back losses
IRISH shares rose slightly yesterday, as the market tried to claw back some of the losses sustained on Tuesday.
For the day, the ISEQ Overall Index finished up 0.6pc, or 15.81 points, at 2,635.93. Strong results from bookmaker Paddy Power and agri-foods business Glanbia, combined with a tentative second look by traders at CRH, helped overcome the fallout from Tuesday night's downgrade of Irish debt by Standard and Poor's.
Building materials giant CRH made up a little of the value it lost in Tuesday's bloodbath, closing up 2.18pc at €11.96 amid speculation that the stock may now be undervalued. NCB stockbrokers reiterated its "buy" rating on the stock, pointing to the 5.3pc dividend yield.
Paddy Power increased 2.54pc, ending the day at €26.66 on the back of pre-tax profits of more than €52m. That was a 54pc increase on last year and the gambling giant said it expected to beat analysts' estimates for the rest of the year.
Glanbia gained 1.45pc to reach €3.43 after posting a 39pc increase in operating profit for the first half of the year and increasing the divided by 5pc. Glanbia's results helped most food stocks, with Kerry Group closing up slightly while Fyffes and Origin Enterprises both ended the day up more than 1pc.
There were few laggards on the day, but Tullow Oil dropped 4.61pc to €14.96 after the firm said there would be delays on its Uganda projects because of a tax dispute, while Allied Irish Banks slipped 2.88pc as Stoxx Ltd, which runs a number of Indices around Europe, said the lender will be among seven companies removed from the Stoxx 600 from next month after its regular quarterly membership review. In contrast to Ireland, other European stocks declined for a second day, extending a five-week low, after lower-than-forecast US durable-goods orders and new-home sales added to mounting concern about the strength of the world's largest economy.
National benchmark indexes declined in the other 17 western European markets. France's CAC 40 dropped 1.2pc and Germany's DAX slid 0.6pc. The UK's FTSE 100 retreated 0.9pc while the composite Stoxx 600 index fell 0.8pc. "The fact is we are going to be in for slower, lower growth," said Justin Urquhart Stewart of 7 Investment Management in London.