Tuesday 16 October 2018

ISEQ has best week since May 2017 in rebound

 

A near 5pc rise at heavily-weighted CRH fuelled the rise, while Smurfit Kappa (up 9.5pc) and Ryanair (up 6.9pc) were also significant contributors. Stock photo: Reuters
A near 5pc rise at heavily-weighted CRH fuelled the rise, while Smurfit Kappa (up 9.5pc) and Ryanair (up 6.9pc) were also significant contributors. Stock photo: Reuters
Gavin McLoughlin

Gavin McLoughlin

The ISEQ index of Irish shares had its best week since last May as markets rebounded from a volatile fortnight.

The index closed at 6833.41 on Friday, up 3.54pc on the week.

A near 5pc rise at heavily-weighted CRH fuelled the rise, while Smurfit Kappa (up 9.5pc) and Ryanair (up 6.9pc) were also significant contributors.

Donegal Investment Group rose almost 8pc and is at an all-time high after receiving more than €40m in cash, on foot of the resolution of a dispute with Monaghan Mushrooms. Glanbia was up almost 5.5pc.

European shares gained on Friday, snapping a three-week losing streak as earnings updates continued to impress.

Solid reports from large-cap companies including Renault lifted the STOXX 600 index 1.1pc.

The pan-European benchmark had its best week since December 2016 - rising 3.3pc.

The recovery follows a turbulent start to February, when worries that rising US inflation would trigger faster increases in interest rates caused equities to sell off globally.

"The reason for the change in sentiment may well be down to the fact that the overall global economic picture continues to remain fairly positive," Michael Hewson, chief market analyst at CMC Markets, wrote in a note.

According to Thomson Reuters data, European fourth-quarter earnings are expected to rise 14.6pc, an upwards revision from last week's forecast of 11pc and following 15 weeks characterised by a string of downgrades.

That brought Europe to just below the 14.8pc growth rate expected for the S&P 500.

Additional reporting Reuters

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