| 12.2°C Dublin

Irish and European stocks increase

Close

A Ryanair flight. Picture credit Rui Vieira/PA Wire

A Ryanair flight. Picture credit Rui Vieira/PA Wire

PA

A Ryanair flight. Picture credit Rui Vieira/PA Wire

IRISH shares closed up yesterday, while most of the major European stocks also rose. By the close in Dublin, the ISEQ Overall Index edged up 0.6pc or 30.52 points to end the trading day at 5,000.59. It was the first time that the index had crossed the 5,000 barrier since June.

The leaders on the Dublin market included home builder Abbey, which rose 2.3pc to €11.25, while property investment trust Green REIT was up 1.9pc to €1.33.

Ryanair closed up 1.8pc to €8.56.

On the other side of the board, the laggards included Paddy Power, which slipped 1.9pc to €61.31, while Kerry Group was down 1pc to €56.02 and Aer Lingus fell 0.8pc to €1.66.

Elsewhere, European lenders pushed stocks to a two-month high, even as they pared gains in the final hour of trading amid a decline in miners and oil and gas companies.

The Stoxx Europe 600 Index added 0.1pc at the close of trading in London, after earlier jumping as much as 0.5pc.

The benchmark index gained 2.9pc last week as Mario Draghi said the ECB needs to accelerate inflation and may broaden its asset-purchase programme.

In London, the FTSE 100 slipped 0.3pc while France's CAC 40 and Germany's DAX were up 0.5pc.

"Banks are outperforming on the prospect of economic stimulus measures," said Guillermo Hernandez Sampere, of Germany-based MPPM EK.

"This is a good sign for their earnings, which suffered in the low interest rate environment."

As stocks advanced, the yield on 10-year Spanish government bonds fell below 2pc for the first time, showing that investors are confident the ECB will expand its asset purchases to euro-area sovereign debt as soon as next week.

BT Group climbed 3.7pc after the biggest UK broadband provider said it's in early talks with two mobile companies about an acquisition.

Friends Life rallied 5.9pc after Aviva said it's in talks to buy the company. Aviva, Britain's second-biggest insurer, declined 5.4pc.

Irish Independent