Business World

Saturday 25 November 2017

European stocks dip, fuelled by US budget concerns

Sarah McCabe

Sarah McCabe

EUROPEAN stocks declined during trading yesterday as investors awaited reports on US durable-goods orders and home sales amid concern over budget talks in the world's largest economy.

Irish share prices were no different; the ISEQ Overall Index had fallen by 2.13 points or 0.05pc to 4,270.99 by mid-afternoon. Thirteen of its 25 listed companies rose in value while 12 declined and 20 stayed static.

Ormonde Mining fell dramatically, shedding 21pc to 5c in a morning of relatively large trading for the company – 200,000 shares had changed hands by midday.

The mineral resources firm said last week that it had secured €1.27m from a share placing with institutions and private investors that it will use to develop operations at its Barruecopardo tungsten site in western Spain, one of the biggest undeveloped projects of its type in the world outside China. Permanent TSB also declined markedly, down 5pc to 4c.

On the other end of the scale was Aminex, whose share price rose a tenth to 3c. INM followed, also up 10pc to 5c. Despite PTSB's falls, it was a good day for both AIB and Bank of Ireland, up 2.6pc to 9c and 1pc to 21c respectively.

AIB announced on Tuesday that it had completed deleveraging on €20.5bn worth of non-core loans ahead of a deadline set by the Central Bank.

GROWTH

It said the deleveraging, along with a growth in customer accounts, had seen its loan-to-deposit ratio fall from 165pc three years ago to 106pc, well below the threshold of 122.5pc that the bank was required to achieve under the Central Bank's 2011 PLAR review.

Agricultural services business Origin Enterprises rose 3pc to €6.72 after reporting a 10pc rise in full-year operating profits, though its majority shareholder, Aryzta, fell 1.5pc to €47.49.

Elsewhere in Europe, the FTSE 100 Index had dropped 19.54 points or 0.3pc to 6,551.92 by lunchtime in London, erasing an earlier gain of as much as 0.3pc. Germany's DAX Index and France's CAC both decline 0.3pc to 8,637.77 and 4,183.10 respectively, and the Stoxx 600 similarly dropped 0.3pc to 312.17 by mid-afternoon.

"US economic data continues to be of interest for market participants, with the Fed tapering in the back of their minds," said wealth manager Peter Braendle.

"The debt ceiling talks in the US have resurfaced. I wouldn't say it's already causing uncertainty, but it's a welcome argument for bears."

Nordea Bank slid 2.8pc as Sweden sold its remaining stake in the Nordic region's largest lender. Meanwhile, Carnival, the world's biggest cruise-ship operator, slumped 6.4pc for the biggest drop in the Stoxx Europe 600 Index.

Irish Independent

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