Friday 25 May 2018

Another bad day for Aryzta, ISEQ down

Traders on the floor of the New York Stock Exchange. Photo: Reuters
Traders on the floor of the New York Stock Exchange. Photo: Reuters
Gavin McLoughlin

Gavin McLoughlin

Cuisine de France owner Aryzta had another bad day on the markets yesterday, losing almost 6pc the day after producing a set of results that disappointed investors.

The Swiss-Irish company was among the biggest losers with the Irish index of Irish shares dropping 1.8pc to 6,191.38. Providence Resources gave up the previous day's gains in losing 8pc, while Bank of Ireland declined 6.25pc.

On the other side of the board, it was a decent day for Bulmers maker C&C which rose more than 2pc.

Declines in commodity and energy producers dragged down European stocks from a two-month high, after the Bank of Japan refrained from boosting its record monetary stimulus. Anglo American tumbled 11pc, and Antofagasta slid 4.5pc after abandoning its dividend and saying annual profit slumped 99pc.

A gauge of energy shares tracked crude lower, with Tullow Oil and Seadrill down more than 9.5pc.

The Stoxx Europe 600 Index dropped 1.1pc at the close of trading. The benchmark yesterday capped its biggest two-day rally in three weeks as investors reassessed the ECB's stimulus package. Asian shares fell after the BOJ kept its negative policy rate and asset-purchase plans unchanged. Federal Reserve and Bank of England decisions are due this week.

"Following the weak performance in Asia and disappointing Bank of Japan action today we are seeing profit-taking in the market," said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank. "The Federal Open Market Committee comes out with its rate decision [this evening] followed by the Bank of England, so investors are thinking it's better to take a profit in the pocket and stay and wait."

Additional reporting by Bloomberg

Irish Independent

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