Business Irish

Saturday 24 February 2018

AIB shares up 4.6pc as ISEQ and Euro markets on the rise

Traders work on the floor of the New York Stock Exchange
Traders work on the floor of the New York Stock Exchange

IRISH and European stocks climbed yesterday as German consumer confidence rose more than estimated and investors weighed US reports on durable-goods orders and jobless claims.

The ISEQ was up around 0.6pc in afternoon trading as companies such as Petroneft, Allied Irish Bank and FBD posted gains. Petroneft, which is focused on oil exploration in Siberia, was up 18pc at 6.5 cent.

Financial services companies also had a good day, with AIB trading up 4.6pc at 11.5 cent and FBD trading up 2.5pc at €16.70. Among the fallers were Ormonde Mining, which was down as much as 8pc at 5.5 cents.

Newbie Mincon saw shares dip after the mining machinery company's initial public offering on Tuesday.

In London, Royal Mail jumped the most in five weeks after the UK postal service that listed its shares in October said first-half earnings almost doubled.

Elsewhere in Europe, Vivendi advanced 1.3pc after saying it will replace its chairman once it spins off its wireless business. Accor dropped the most in 17 months after saying it will separate the operation and ownership of hotels into two businesses.

The Stoxx Europe 600 Index gained 0.6pc by mid-afternoon. The gauge has climbed 0.5pc so far this month as the European Central Bank cut its benchmark interest rate to a record low, offsetting concern the Federal Reserve may start paring its stimulus sooner than forecast.

"Equities are the only serious asset at this moment because of central-bank policy stances," said Percival Stanion, the London-based head of the multi-asset group at Baring Asset Management, which manages about $60bn.

National benchmark indexes rose in all 18 western-European markets. The UK's FTSE 100 increased 0.3pc and France's CAC 40 rose 0.5pc. Germany's DAX jumped 0.7pc.

In the US, data showed the final reading of the Thomson Reuters/University of Michigan consumer sentiment index rose to 75.1 in November, from 73.2 in October. That exceeded the decline to 73.1 estimated by economists in a Bloomberg survey.

In Germany, Chancellor Angela Merkel reached a coalition agreement with the Social Democrats. The pact put her on track for a third term leading Europe's biggest economy until 2017. It also signalled Ms Merkel will continue her European policies including a rejection of joint liability for euro-area nations' debt. The deal must pass a referendum among the 470,000 members of the SPD.

Irish Independent

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