Business Irish

Saturday 22 September 2018

DCC up 3.7pc after sealing two deals and guiding increased profit

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

Gavin McLoughlin / Bloomberg

Shares in Irish conglomerate DCC rose 3.7pc in yesterday's trading after it announced two acquisitions and said operating profits were ahead of last year in the first quarter.

The London-listed company has spent a combined £110m (€124.6m) on the deals on an enterprise value basis - meaning any debt is added to the value of the shares in the companies, with cash balances subtracted.

The businesses acquired are audiovisual equipment supplier Stampede, and audio and mobile accessory distributor Kondor.

In Dublin, the Irish index of Irish shares was marginally up in closing at 7046.01. Bulmers maker C&C was among the gainers, up more than 1pc after securing a group refinance.

In New York, the S&P 500 Index pushed through the 2,800 level to the highest since February's market correction as an ongoing pause in trade tensions outweighed a mixed start to earnings season.

Energy stocks, which had been hit by selling during the trade spat, led gains on the benchmark as West Texas crude climbed back above $70 a barrel.

Big banks opened earnings with Citigroup shares falling after missing expectations. AT&T stock slumped after the Justice Department said it will appeal an antitrust ruling in favour of the company.

"Trade issues aren't going away, investors are going into areas perceived to be safer. And as long as you've got a market where there is rotation, that's telling you investors are still prepared to be exposed to the stock market," said Quincy Krosby, chief market strategist at Prudential Financial.

Traders may get some relief as earnings season gets underway in earnest. Trade tensions seemed to ease somewhat, with officials in Beijing appearing to moderate their responses to Trump's tariff threats.

Irish Independent

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