Shares up as bailout targets reached
Published 26/10/2012 | 05:00
IRISH shares rose yesterday, as the troika confirmed the country had hit its bailout targets in its latest review.
By the close in Dublin, the ISEQ Overall Index had risen 0.89pc, or 28.54 points, to close at 3,239.95.
More than twice as many stocks climbed as fell yesterday, although volumes were again low, at a little more than 18 million shares.
The market took off from the opening and kept rising throughout the day before a late wobble sent it back down from its intraday high.
Among the winners were Glanbia, which surged 2.47pc to €7.55. The dairy goods business is holding talks with farmer shareholders ahead of a potential spin-off of its milk-processing operations later this year.
Most oil stocks had a decent day, as prices rebounded after struggling earlier in the week.
Providence Resources rose 3pc to €8.24, while Dragon Oil added 1.9pc to close at €7.05. Pharmaceuticals group Elan rose 1.64pc, a day after releasing strong quarterly results.
Few stocks made significant moves on the other side of the board, although Petroneft slumped 16.7pc to reach 7c. The company raised some $17.25m (€13m) on a placement of shares at 5p a piece in London.
Elsewhere, European stocks climbed for a second day as companies including Unilever and Sanofi posted results that exceeded analysts' estimates.
The Stoxx Europe 600 Index increased 0.3pc, while national benchmark indices declined in 10 of the 18 western-European markets.
The UK's FTSE 100 was unchanged, while France's CAC 40 retreated 0.4pc. Germany's DAX advanced 0.1pc.
"With Europe still in recession, expectations of earnings have been moderate, so many companies beat estimates," said Manish Singh, head of investment at Crossbridge Capital in London.
"Perhaps investors are ready to wait for things to get better.
"On the UK gross domestic product, the initial cheer may be short-lived.
"We won't have an Olympics every quarter and we need more confirmation to feel the UK is out of recession."
Unilever gained 2.6pc, its largest rally since July, after the world's second-biggest consumer-goods company said third-quarter revenue grew better than estimated.
Sanofi climbed 1.4pc after the company reported net income that exceeded market expectations.
The drugmaker also said earnings would drop this year less than it had forecast.
Debenhams jumped 9.2pc to its highest price in five years, after saying it would continue to buy back shares next year.
Advertising giant WPP fell 2.3pc after cutting its full-year sales growth target for the second time in two months.