European shares rise as concerns ease over Greece
IRISH shares rose yesterday in line with the major European stocks as concern eased that Greece would defy its creditors after the country retreated from a plan to ask the Eurozone to write down debt.
By the close in Dublin, the ISEQ Overall Index was up 0.87pc or 47.97 points to end the trading day at 5,570.51.
The leaders on the Dublin market included Ryanair, which rose 1.7pc to €9.93, while Dalata Hotel group closed up 1.2pc to €2.91.
Drinks group C&C closed up 0.9pc to €3.53. PetroNeft rose 6.2pc in London trading after it reported progress at a number of wells it operates in the Tomsk Oblast region of Russia.
On the other side of the board, the laggards included Aer Lingus, which dropped 1.4pc to €2.19, as the Government continued to mull IAG's bid. Insulation group Kingspan fell 0.9pc to €16.
Elsewhere, the Stoxx Europe 600 Index rose 0.8pc at the close of trading. The gauge pared gains of as much as 1.3pc after a person familiar with the matter said Germany expects talks with Greece to drag on until the current round of aid runs out.
Greek stocks surged 11pc, posting the best two-day gain in 24 years. Finance Minister Yanis Varoufakis proposed late on Monday to exchange Greece's existing debt for new bonds linked to economic growth.
Spain's IBEX 35 Index and Italy's FTSE MIB Index added at least 2.6pc, rebounding from two-day drops.
"It's good news that there is no haircut," said Tristan Abet, a Paris-based strategist at Louis Capital Markets, referring to Greece's debt. "We're seeing the normalisation.
"It's quite smart to link the bonds to economic growth. That's a nice element."
National Bank of Greece and Eurobank Ergasias rallied at least 18pc, pushing a gauge of Greek lenders higher.
Miners and oil-and-gas shares were the best performers in the Stoxx 600, after posting the worst drop among 19 industry groups in the gauge in the last six months.
(Additional reporting Bloomberg)