Business World

Tuesday 15 October 2019

AIB and Total Produce among the losers as Irish stocks decline

Sarah McCabe

IRISH stocks were down yesterday, mirroring a decline in London. The ISEQ Overall Index fell by 0.63pc, down 24.62 points to close at 3858.22.

The biggest loss was felt by internet and mobile technology company Zamano, down 22.2pc on light volume.

AIB was down 3pc to 6c. Dublin stockbrokers Goodbody said yesterday that the bank's mortgage arrears growth is starting to flatten out but that it only envisages the bank returning to profitability in the latter stages of 2014.

Food suppliers also fell. Fresh food provider Total Produce was down 1.7pc to 70c while baked goods specialist Aryzta fell by 0.9pc to €47.

There was better news for a host of Irish listed mining companies. Spanish mineral extractor Ormonde Mining saw the biggest gains of the day, up 23pc to 8c, a contrast to Monday when its 13.3pc fall was the steepest decline of all of the ISEQ's 45 companies.

Petroceltic, which has oil and gas operations in the Mediterranean and North Africa, rose 3.9pc to 8c.

Media companies fared well too, Independent News & Media was up 2.6pc to 4c while UTV Media rose 1.1pc to €1.90.

In Europe, declines pared an eleventh straight month of gains as a report showed business activity in the US unexpectedly shrank this month for the first time in more than three years.

National benchmark indexes climbed in 13 of the 18 western European markets, including Sweden, which closed early for a public holiday.

Germany's DAX rose 0.5pc, while the UK's FTSE 100 declined 0.4pc and France's CAC 40 fell 0.3pc.

"The US has been slightly hindered by negative news flow that we think will correct itself in a few months," said Richard Scrope of Oriel Asset Management in London.

"We'll always see a short-term reaction in European markets to US data. Within Europe, the data has been weak and unemployment is growing, which puts more pressure on the ECB to cut rates."

The composite Stoxx Europe 600 Index fell 0.2pc after climbing as much as 0.5pc earlier in the day. The gauge has still risen 1pc in April, completing the longest stretch of monthly gains since 1997 amid speculation that global central banks will add to stimulus efforts. It is up 6.1pc alone in the year so far.

Fiat Industrial sank the most in 11 months after cutting its 2013 earnings target. Germany's biggest lender Deutsche Bank, on the other hand, rallied its most since September after it announced plans to raise as much as $6.5bn in capital.

Irish Independent

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