Iseq gains 1pc after four days of declines
European stocks rose the most in three weeks yesterday, amid optimism China will act to support its weakening economy.
The ISEQ Overall Index rose 86.62 points, adding 1.38pc to 6,366.33 after four trading days of declines. Housebuilder Abbey saw the biggest gains, adding 9pc to €17.47. IFG followed, up 4pc to €2.05. CRH gained 3pc to €23.69 while Dalata added 2pc to €5.05. The hotel operator said it had purchased the Clarion Hotel in Sligo for €13m.
The biggest laggards were exploration companies. Troubled Petroceltic plummeted 44pc to 12c. Earlier this week Petroceltic said it had secured additional time to sell or rescue its business. Providence Resources shed 13pc to 14c.
The Stoxx Europe 600 Index climbed 1.3pc at the close of trading. It rose as much as 2.4pc earlier in the day after a report showed China's economy grew at an annual pace that was just shy of a government target, while leaving open the possibility of further stimulus. Europe's benchmark pared its advance as oil-and-gas producers gave up some gains amid a drop in crude. Concern over a slowdown in the world's second-biggest economy and deepening oil losses have weighed on investor sentiment this year, dragging the Stoxx 600 down as much as 10pc to its lowest level since December 2014.
The market is being led by a combination of earnings reports and technical factors, said Jeff Powell, managing partner of Polaris Greystone Financial Group in California.
"From a technical perspective, we are at a level which if we don't hold, we're in big trouble and even decent earnings are probably going to be overlooked," he said.
Credit Agricole climbed 2.5pc and Ocado Group rallied 6.9pc following a report that the online grocer will partner with Amazon in Britain.