Saturday 24 February 2018

Chipmakers up after deal for ARM

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange (NYSE)
Colm Kelpie

Colm Kelpie

THE deal for UK-based chip designer ARM Holdings pushed chipmakers higher, boosting European equities at the close of a volatile session.

By the close in Dublin, the ISEQ Overall Index increased 0.46pc, or 26.63 points, to end the trading day at 5,817.57.

The leaders on the Dublin market included packaging giant Smurfit Kappa, which rose 2.7pc to €21.02, while insulation group Kingspan increased 1.3pc to €21.42.

On the other side of the board, the laggards included insurance group FBD, which slipped 0.8pc to €5.55. Speciality baker Aryzta dropped 0.8pc to €32.98.

Elsewhere, ARM jumped 41pc to a record after SoftBank Group agreed to buy the chip designer for £24.3bn.

Peers Dialog Semiconductor and Ams advanced more than 4.7pc, pushing a gauge tracking the region's technology shares to their biggest surge since last August. Miners erased earlier declines, while energy companies in the Stoxx Europe 600 Index fell as oil slipped.

The market showed resilience after a failed coup in Turkey, with the benchmark gauge for Europe's stocks adding 0.2pc at the close of trading in London.

Speculation that central banks will limit the fallout of Britain's vote to leave the European Union has helped the Stoxx 600 rise in two of the past three weeks.

It closed 2.2pc away from its level on the day of the referendum.

"The fact that the coup has failed in Turkey is helping European stocks, adding to optimism on expectations that the ECB might announce some further easing or call for governments to step up fiscal measures to prop up the economy this week," said Pierre Mouton of Notz, Stucki & Cie in Geneva.

Additional reporting by Bloomberg

Irish Independent

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