Euro deal boosts global markets
GLOBAL stock markets surged yesterday amid hopes that European leaders have finally got their act together to deliver a solid roadmap for preventing the debt crisis from completely engulfing the region.
Banks were among the main gainers in Europe as an enhanced €1 trillion bailout fund helped to quell fears that European mandarins would be unable to come to an agreement that would prevent further chaos.
In Ireland, the ISEQ benefited from the day's rally, opening strongly. The ISEQ Overall Index eventually ended the day 3,76pc, or 100.34 points higher, at 2,766.38. It had risen slightly higher earlier in the day, but still managed to hold on to most of the gains to produce one of the strongest performances in recent weeks, and bringing it back to a closing level not seen since the summer.
The day's action centred on gainers, with a range of stocks posting solid advances.
Among them was Bank of Ireland, which added 8pc to close at 10.8 cent. While the latest EU deal will see the area's banks having to raise their capital buffers by the end of next June, Irish banks will be exempt from the fresh equity raising, having already secured enough additional funding to shore up their balance sheets.
Also on the move yesterday was drug company Elan. The company said that sales rose 17pc to $328.5m (€231.5m) for the quarter to the end of September, while adjusted earnings before interest, tax, depreciation and amortisation jumped 58pc to $60.3m for the period. The firm also predicted that annual revenues will rise to $2bn within the next five years. The company's Ireland-listed stock climbed 1.4pc to €7.90.
Firms that have been hit hard by negative sentiment due to increasingly hard-pressed consumers also found more favour yesterday.
Builders' merchanting and hardware group Grafton jumped 5.07pc, or 13.5 cent to finish the session at €2.80. Smurfit Kappa rose 7.61pc, or 35 cent, to end the day at €4.95. That's still nearly half the level it was changing hands at back in April, however.
Cavan-based insulation maker Kingspan was also firmly in the green for the day, adding a hefty 6.12pc, or 37 cent, to end at €6.42. But it still has some work to do to make it back to levels it traded at during the early summer. It was at €7.31 at the beginning of July.
Resources firm Kenmare Resources was the biggest main performer of the day, though. It soared 11.14pc, or 5.1 cent, to just under 51 cent, erasing at least some of its more recent losses that were inflicted as investors fretted about the potential for global economic growth.
Ryanair also had a good day, adding 5.15pc, or 17.1 cent to €3.49, also marking its highest level since July.