Stocks mark time but credit worries hang like a cloud
ISEQ gains for third day as Europe remains static
IRISH stocks rose for a third day, closing just a whisker below the 3,100 mark as UTV gained on hopes that changes to the rules on television advertising will boost revenues.
The ISEQ Overall Index rose 10.26 points, or 0.3pc, to 3099.71 points as stock markets around Europe closed little changed.
UTV advanced 5.7pc to €1.49 after the Broadcasting Authority of Ireland proposed raising the level of advertising permissible on independent commercial television from 15pc of daily broadcasting time up to 20pc.
Irish Life & Permanent posted a second chunky gain yesterday, advancing 5.6pc to €1.83 after Deutsche Bank initiated coverage of the lender with a "buy" recommendation. Allied Irish also had a good day, closing up 3.1pc at €1 after managing director Colm Doherty quit the board of US-based M&T Bank. The resignation prompted hopes the bank is making progress in its efforts to sell its 22.5pc stake in US bank that also includes Warren Buffett among its shareholders.
Elsewhere in Europe, stocks were little changed. The Stoxx Europe 600 Index advanced less than 0.1pc, having swung between gains and losses at least 16 times. The gauge has rebounded 9.6pc from its 2010 low on May 25 after concern about the impact of Europe's sovereign debt crisis pushed the benchmark gauge to its cheapest level relative to earnings in more than a year.
Gains by insurers offset a decline by car companies and a slump in technology shares after Nokia cuts its forecasts. Daimler dropped 2.8pc, leading car shares lower. Nokia, the world's biggest maker of mobile phones, tumbled 9pc.
"We're caught between the worries about European government bonds and recovery in the economy," said Jerome Forneris at Banque Martin Maurel. "Here in Europe, our economic numbers are mixed, but the leading economy is the US. If they are doing well, we'll benefit from that."
Reports yesterday showed US industrial production rose last month by the most since August, while builders broke ground on fewer homes than projected. Output at factories, mines and utilities increased 1.2pc after a 0.7pc gain in April. Housing starts fell 10pc, the biggest decline since March 2009, according to figures from the US commerce department.
Celesio gained 4.3pc as Europe's largest publicly traded drug wholesaler said it was forming a joint venture with Phoenix Group in the Netherlands to distribute pharmaceuticals.
Nokia sank 9pc after cutting its outlook for sales and margins, hurt by competition in high-end phones from Apple's iPhone and devices based on Google's Android software. The company said second-quarter handset revenue and margins would be "at the lower end of or slightly below" the range previously forecast, and also cut its outlook for the full year.
Jupiter Fund Management jumped 15pc on its first day of trading in London. The money manager run by Edward Bonham Carter raised £220m (€265m) in an IPO.