Shares in Irish sandwich maker Greencore hit by US customer's rival deal
Shares in Irish sandwich-maker Greencore dropped sharply yesterday after news emerged that its US customer Tyson Foods has agreed a deal to buy US sandwich supplier AdvancePierre Foods for $3.2bn (€2.9bn).
Greencore shares fell by 7.3pc on the back of the announcement. Greencore's US-based Peacock unit recently announced a long-term deal with Tyson.
Analysts at Merrion said the sell-off in Greencore was overdone.
Elsewhere, the Iseq index of Irish shares was one of the continent's only exchanges in the red on Tuesday, losing 0.4pc - a drop of 27.86 points - to close at 6918.69
IFG suffered a fall of 4.1pc. Kerry Group shares lost 1.9pc, while Ryanair was down 0.9pc.
There were gains of 2.6pc for Kingspan and 2.3pc for Independent News & Media, while building group Abbey rose by 2pc.
Dealmaking and earnings underpinned European stock markets on Tuesday as the focus shifted back to fundamentals and away from politics, for now, with the pan-European STOXX 600 index scoring its fifth straight session of gains.
The STOXX 600 ended up 0.2pc, after briefly hitting its highest level since August 2015 during the session. It is up 7.1pc so far this year.
A win for centrist candidate Emmanuel Macron in the first round of the French presidential election sparked a global rally in risk assets on Monday as investors breathed a sigh of relief over the reduced chances of a nationalist upset.
"You've got all these positive factors in Europe's favour, but the problem is of course that we have had some political road bumps to contend with this year," Ken Odeluga, market analyst at City Index, said.
"That is the main cautionary factor that is this fly in the ointment for what are a positive set of circumstances overall."
Additional reporting by Reuters