Business World

Sunday 25 September 2016

Stock up as China loosens credit

Published 21/04/2015 | 02:30

Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange. Photo: Reuters
Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange. Photo: Reuters

Stocks closed higher in Dublin, in line with the big European exchanges as investor sentiment lightened after China's central bank boosted stimulus measures.

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Despite deepening fears over Greece, the Stoxx Europe 600 Index was up 0.8pc to 406.87 at the close of trading, with mining stocks leading the way.

In Dublin, the ISEQ index was 0.1pc higher at 6,254.09.

Bank of Ireland bucked the trend, closing down 1.13pc at 35 cents each despite the shares being raised to neutral from sell by Goldman Sachs.

On the flip side of the board, CRH shares were up 1.45pc to €25.805 each, while Aer Lingus shares moved 2.25pc higher to €2.41, nudging closer to IAG's proposed bid level.

Shares in Permanent TSB were up close to 3pc yesterday to €4.80 each.

Details of the bank's proposed €400m IPO will be firmed up in the coming weeks.

Elsewhere, mining stocks rose as commodity hungry China cut the amount of reserves its banks need to hold by the most since the global financial crisis. The move by the world's biggest commodity consumer follows stimulus measures by the European Central Bank and the Bank of Japan.

BHP Billiton and Rio Tinto Group rose at least 2.5pc each. Germany's DAX Index jumped 1.7pc, rebounding from its worst week since 2011 and posting the best performance among western-European markets today. Fresenius Medical Care advanced 2.3pc after a report said it's discussing a purchase of Israel's Nephromor.

Among stocks moving on corporate news, Telenet Group Holding rallied 5.7pc after agreeing to buy Royal KPN's Belgian mobile-phone business Base for €1.33bn. KPN advanced 3.1pc.

Irish Independent

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