Saturday 16 December 2017

Big swings in One51 shares as calm returns to European markets

One 51 signage
One 51 signage

Bloomberg/Colm Kelpie

Shares in One51 traded in a range from €1.80 to €1.85 each yesterday, with the big jumps in price reflecting a relative lack of liquidity in the stock, which trades in a stockbroker-managed grey market.

A €1.80-a-share approach from private equity firm CapVest has set a floor under the stock.

Larg-scale buying at €1.85 on Thursday sparked speculation that Dermot Desmond was actively buying in the market.

While all sides are tight-lipped, there is increasing speculation that CapVest could walk away rather than lift its offer for the business, originally made at a premium but which is now at or below the market.

Meanwhile, calm returned to European equity markets yesterday after days of wild swings this week. The region's shares were little changed, with the Stoxx Europe 600 Index down 0.1pc to 386.24 at the close of trading.

After three days of moves of more than 1pc, the gauge had a relatively quiet day. It swung between gains of 0.6pc and losses of 0.5pc amid volume that was about a fourth lower than the 30-day average. By the close in Dublin, the ISEQ Overall Index was up 0.29pc, or 18.86 points, to end the trading week at 6520.61.

The leaders on the Dublin market included insurance group FBD, which more than reversed Thursday's losses by closing up 7.3pc to €6.91, while food ingredients company Kerry rose 1.1pc to €69.31. The laggards included Aer Lingus, which slipped 1.2pc to €2.48, while insulation group Kingspan dropped 0.1pc to €22.68.

Elsewhere, the Stoxx 600 has dropped 2.7pc this week, posting its first decline in three weeks. It slumped the most since October on Wednesday, extending losses after China devalued its currency, before rebounding 1pc on Thursday.

"Nobody wants to hold big positions into the weekend and after this really nervous week," said Benno Galliker, a trader at Luzerner Kantonalbank in Switzerland. "It's just a tug of war between investors who believe there's some more downside ahead and those who think we've corrected enough ... Everybody's happy that this week is coming to an end."

Irish Independent

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