Stocks rebound on Japanese news
IRISH shares rebounded yesterday as Dublin-focused traders joined the Europe-wide rally on the back of an apparent easing of the nuclear crisis in Japan.
By the close of trading the ISEQ Overall Index had risen by 1.32pc, or 36.86 points, to 2,823.94.
It was only the second day of gains since the earthquake and tsunami had devastated Japan and sparked a crisis at a nuclear power plant. Concerns about a possible catastrophe occurring at the plant seemed to have been eased over the weekend, however, after power was reconnected to the station.
That ensured a day of buying across Europe.
The banks had a decent day by and large despite Finance Minister Michael Noonan admitting they would need more than the €10bn outlined in the IMF/EU bailout. Irish Life and Permanent added 7.38pc to top 66cent while Bank of Ireland rose 3.79pc to 30c. AIB was unchanged.
Traders put their faith in commodity stocks in the hope that the rebuilding process in Japan would require plenty of raw materials but were also buoyed as the conflict in Libya pushed up oil prices by more than $2.
Providence Resources rose 2.56pc to €3.20 while Petroceltic, which released a positive drilling update yesterday, added 8pc to top €3.20. Miner Kenmare Resources climbed 9.07pc to 47c.
Some stocks did slip back yesterday. Chief among them was Elan.
The pharmaceuticals giant fell 2.35pc after Novartis won European approval to sell a competitor to Elan's multiple sclerosis drug Tysabri.
Elsewhere, national benchmark indices rose in all of the 18 western European markets, except Denmark.
France's CAC 40 Index advanced 2.3pc, the UK's FTSE 100 Index increased 1.2pc and Germany's DAX Index jumped 2.2pc. "There seems to be some relief as the Japanese situation looks a little better and the allied forces are now in the Middle East," said Kevin Lilley, a fund manager at Royal London Asset Management.
Deutsche Telekom soared 12pc, the biggest gain since October 2008. AT&T agreed to buy T-Mobile USA to create America's largest mobile-phone company, trumping Sprint Nextel's effort to acquire the business. The acquisition is the biggest in the wireless industry since 2004.
Vodafone, the world's largest mobile-phone operator, climbed 3.7pc. The AT&T deal cuts the number of mobile-phone operators in the US, benefiting Vodafone's joint venture with Verizon Communications, according to analysts.
Hellenic Telecoms climbed 5.8pc. Deutsche Telekom, which owns a 30pc stake in Greece's biggest phone company, has an option to acquire shares if the Greek government sells down its holding.