Business Irish

Tuesday 12 December 2017

Markets: Kenmare Resources and airlines enjoy good day

Colm Kelpie

Colm Kelpie

IRISH and European stocks were little changed yesterday following a four-day decline. By the close in Dublin, the ISEQ Overall Index had risen fractionally by 0.2pc or 9.63 points to end the trading day at 4722.94.

The leaders on the Dublin market included Kenmare Resources, which surged 30pc after the mining company rejected a takeover offer from Australian rival Iluka Resources.

Its shares closed at 19c.

Iluka offered stockholders in the Dublin-based company 0.036 new shares for each one in Kenmare they own as part of the "preliminary" proposal, Kenmare said.

Kenmare's stock climbed the most in more than five years.

It was also a good day for the State's two big airlines, with Ryanair rising 1.6pc to €6.99 and Aer Lingus up 1.1pc to €1.39. That came after a strike by French air traffic controllers ended.

On the other side of the board, the laggards included the State's two so-called pillar banks, with AIB down 5.9pc to 10c and Bank of Ireland falling 1.6pc to 25c as a report from the Central Bank laid bare the extent of the debt problem facing small and medium businesses here.

Speciality baker Aryzta closed down 2.1pc to €68 and Glanbia fell 2.6pc to €11.

Elsewhere, the Stoxx Europe 600 Index slipped less than 0.1pc at the close in London.

The gauge slid as much as 0.5pc earlier, after President of the Federal Reserve Bank of St Louis, James Bullard, said interest rates may rise by March.

The benchmark index fell the previous four days, the longest streak in seven weeks, as investors weighed violence in Iraq, and disappointing economic data in the US and euro area.

National benchmark indexes retreated in nine of the 18 markets in western Europe. Germany's DAX lost 0.6pc, France's CAC 40 slid 0.5pc, and the UK's FTSE 100 added less than 0.1pc.

Irish Independent

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