Business Irish

Monday 16 December 2019

Dublin falls while Europe rebounds

Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange. Reuters
Traders are pictured at their desks in front of the DAX board at the Frankfurt stock exchange. Reuters Newsdesk Newsdesk

The ISEQ closed down for a second day while bourses elsewhere in Europe enjoyed something of a rebound.

The benchmark fell 7.8 points, or less than 0.2pc, to close at 4,777.98 points as explorers such as Conroy and Kenmare tumbled. Exporters such as Total Produce and export-dependent Irish Continental also had a bad session as both closed down 4.2pc as the Central Statistics Office unveiled export figures. FBD endured another bad day as it tumbled 4pc following this week's profit warning.

Propping up the winners were Ovoca, Smurfit Kappa and Independent News & Media but it was a lacklustre session.

Elsewhere Ericsson's cost-cutting plan and KBC's better-than-estimated earnings helped European stocks rebound from an intraday drop led by energy producers and utilities.

The Stoxx Europe 600 Index gained 0.2pc to 335.86 at the close of trading, after rising as much as 0.6pc and falling as much as 0.4pc. The gauge tumbled 1.1pc on Wednesday, the biggest slide in four weeks, as banks retreated amid concern that prosecutions and penalties will widen in a probe into the rigging of exchange-rate benchmarks.

"Markets are concentrating on company news at the moment, rather than macroeconomic or geopolitical news," said Herbert Perus, who helps oversee $36bn at Raiffeisen Capital Management. "Stocks of companies with good numbers are proceeding higher and those with bad numbers are underperforming. This is a good sign for normalisation of market-participant behaviour."

KBC climbed 6.1pc, the biggest rally in 15 months, after the Belgian lender posted third-quarter net income that beat analyst projections and made upbeat comments on Ireland. Ericsson rose 3.2pc after announcing a plan to cut costs. The measure, which includes an unspecified number of job cuts, will take full effect in 2017, the company said.

Irish Independent

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