Surge pushes ISEQ up to highest level in four weeks
Aer Lingus one of only a few losers as oil companies and even banks see shares rise
Published 14/10/2010 | 05:00
IRISH shares climbed to a four-week high yesterday as Readymix surged following a takeover approach from an unidentified suitor.
The benchmark ISEQ added 19.61 points, or 0.7pc, to close at 2729.06 after the Dublin-based concrete and building materials company closed up 35pc at 23c after saying it was in talks that may or may not lead to a takeover.
Yesterday's surge helped lift the shares from their lowest levels in more than a decade.
Cider maker C&C advanced 4.9pc to €3.28 after saying the previous day that it expected to meet analysts' expectations for the year and reporting first-half profits which showed a small increase in UK sales.
Exploration companies Aminex and Dragon Oil both had a good day, rising more than 4.3pc while the banks also posted gains.
One of the few losers was recent star Aer Lingus, which saw shares fall 2.2pc to €1.12 despite informing the market that trading had been stronger than expected in the third quarter, especially in September.
Stocks elsewhere in Europe advanced after minutes from the Federal Reserve showed policy makers are prepared to buy more government debt, while Intel and JPMorgan Chase reported earnings that topped estimates.
The benchmark Stoxx Europe 600 Index added 1.4pc by the close of trade in London, rebounding from the previous session's 0.3pc slide.
European benchmark indexes advanced in all 18 western markets, except Luxembourg. The FTSE 100 Index gained 1.5pc while the DAX and CAC 40 Index both increased 2.1pc.
Trading resumed on NYSE Euronext's European markets in Paris, Lisbon, Amsterdam and Brussels after unspecified technical problems forced the stock exchange operator to suspend trading for half an hour.
"Clearly the US economy with high levels of debt needs as much quantitative easing as is necessary to get the economy growing again," said Andreas Utermann, chief investment officer at RCM. "We anticipate more to come."
Porsche gained the most in almost three months after the carmaker narrowed its full-year loss. Standard Chartered fell after the bank announced a £3.3bn share sale.
STMicroelectronics, Europe's largest chipmaker, rose 2.5pc in Paris and Infineon Technologies, the continent's second-biggest, climbed 2.6pc after Intel said that it will generate $11.4bn of fourth-quarter sales. The company cited strong demand from businesses and customers in emerging economies.
Transocean led gains by oil-exploration stocks, jumping 3.9pc after the US government lifted its ban on deep-water drilling. The ban was introduced following the explosion at BP's Macondo well off the Louisiana coast which led to the world's largest accidental oil spill.
Burberry dropped 3pc after the luxury retailer said annual profits will be in the "top half" of analysts' estimates, disappointing investors who had expected upgrades after second-quarter sales beat forecasts.