Thursday 13 December 2018

PTSB shares surge on its loan sale

Permanent TSB. Photo: Collins
Permanent TSB. Photo: Collins

Donal O'Donovan / Reuters

Shares in Permanent TSB closed up a massive 9.375pc at €2.10 yesterday, after the bank confirmed its long-planned sale of more than 10,000 problem mortgages. Bank of Ireland shares were up 1.94pc. It had said on Monday that it may look to execute a similar deal to slash its stock of non-performing exposures.

Elsewhere, global equity markets rebounded on Tuesday on a report that said the United States and China hoped to resume talks to defuse a budding trade war, while the dollar jumped against the yen after the Bank of Japan (BoJ) said it intends to keep interest rates low.

BoJ reassurances that it will maintain its super-easy monetary policies for an "extended period of time" pushed the yen down and global bond yields lower.

Stocks rebounded, with regional indexes for Britain's FTSE 100, Germany's DAX and France's CAC 40 all climbing.

In Dublin the Iseq fell however, to close at 6,832. The pan-European FTSEurofirst 300 index of leading regional shares closed up 0.38pc while MSCI's gauge of stocks across the globe gained 0.29pc.

The Dow Jones Industrial Average rose 0.57pc, to 25,451.1.

The market has withstood the recent technology sell-off and fears of a full-blown trade war remarkably well, said Hank Smith, co-chief investment officer at Haverford Trust.

US President Donald Trump pays attention to the stock market and if there were a significant sell-off on trade tariff headlines, Smith said he believes Trump would reverse positions.

"The economy has momentum to withstand these tit-for-tat trade spats that are going on right now. The market is, at least for now, seeing this as negotiations as opposed to the beginning of an all-out global trade war," Smith said.

Irish Independent

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