Friday 17 November 2017

European shares rise on Greece deal

Kingspan - up 7.5pc
Kingspan - up 7.5pc

IRISH shares increased yesterday in line with the major European stocks in the first day of trading since Greece struck a deal to extend its bailout.

By the close in Dublin yesterday, the ISEQ Overall Index was up 1.8pc or 103.95 points to end the trading day at 5,872.35. The ISEQ, along with the Dutch AEX Index and the OMX Copenhagen 20 Index, climbed the most among 18 western-European markets.

The leaders on the Dublin market included insulation group Kingspan, which closed up 7.5pc to €17.69 as the company announced that 2014 marked five years in a row of double-digit earnings growth.

Food ingredients company Kerry was up 4.3pc to €64.69. It announces its 2014 earnings today.

On the other side of the board, the laggards included Dalata Hotel group, which slipped 0.6pc to €3.18, and drinks group C&C, which fell 1.3pc to €3.75.

Elsewhere, the Stoxx Europe 600 Index added 0.7pc at the close in London.

The FTSE 100 Index surpassed a record close in intra-day trading before falling as much as 0.4pc as lower-than-projected profit at HSBC Holdings dragged the stock lower. The UK gauge ended little changed.

"Clearly it's disappointing," said Kevin Lilley, head of European equities at Old Mutual Global Investors UK in London, referring to HSBC's results.

"But that's one company. Greece will still be an issue for the market for some time, but the market becomes desensitised to it. It looks like we're not going to have the worst-case scenario. In this environment, people can focus on the underlying companies and the improvement in the underlying economy."

The Stoxx 600 reached its highest level since October 2007 after advancing for a third week, the longest stretch since the start of December, on optimism Greece and its creditors would agree on a deal.

Greece's ASE Index slipped 4.5pc last week. The Greek market was closed yesterday for a holiday.

Irish Independent

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