Wednesday 22 November 2017

Euro shares pick up after slump

Permanent TSB chairman Alan Cook
Permanent TSB chairman Alan Cook
Colm Kelpie

Colm Kelpie

EUROPEAN shares advanced yesterday, following their largest three-day slump in seven months, as mining companies climbed and banks rebounded from a three-week low.

In Dublin, the ISEQ Overall Index closed up 1.74pc or 80.95 points to end the trading day at 4721.47.

The leaders included Permanent TSB, which rose 6.9pc to 9 cents as the bank announced the appointment of two new non-executive directors.

Chairman Alan Cook said the addition of Julie O'Neill and Richard Pike was part of the board's refreshment.

Allied Irish Banks rose 3.9pc to 14 cents amid reports that the bailed out lender has approached the Government about setting up a bonus plan to retain top executives.

Home insulation group Kingspan was up 3.8pc to €13.91, while insurance group FBD rose 2.2pc to €18.30.

On the other side of the board, the laggards included drinks company C&C, which fell 0.8pc to €4.13. Shipping and transport group Irish Continental was down 0.5pc to €28.60, while food ingredients company Kerry Group dropped 0.4pc to €49.65.

Elsewhere, the Stoxx Europe 600 Index increased 0.7pc at the close of trading.

The benchmark retreated 4.2pc from January 22 through yesterday as the Argentinean government's decision to allow its currency to devalue triggered a rout in emerging-market currencies.

"We will start to see positive earnings surprises increase in Europe in the next few quarters," said Didier Duret, chief investment officer at ABN Amro Private Banking in Amsterdam.

"The correction we had in the past few days was more of a self-regulation from the market. The downturn is not a long-term trend and fundamental sentiment hasn't changed."

National equity benchmarks rose in 15 of the 18 western- European markets yesterday.

The UK's FTSE 100 added 0.3pc and Germany's DAX increased 0.6pc. France's CAC 40 rallied 1pc.

In the UK, the Office for National Statistics said gross domestic product expanded 0.7pc in its initial estimate for the final three months of 2013.

Irish Independent

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