Sunday 25 March 2018

German Dax hits new 2016 record

Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt
Traders are pictured at their desks in front of the DAX board at the stock exchange in Frankfurt

Sean Duffy

Germany's top share index hit a new high for the year yesterday as European shares advanced for a fifth straight session, boosted by new highs on Wall Street and strong results from companies including Munich Re.

By the close in Dublin, the ISEQ overall index of Irish shares closed up 1.1pc, or 65.05 points, to close at 5,960.03.

The day's biggest winners were Providence Resources, which rose by 7pc after losing almost 9pc of its value yesterday.

Shares in Kenmare Resources also saw similar gains, while software company Datalex was up 3pc.

Bank of Ireland increased by just over 3pc.

CPL Resources and Aminex were the day's biggest losers, shedding 5pc and 6pc respectively.

In addition, Ireland's 10-year bond yield reached a record low of 0.36pc yesterday and Portuguese yields fell to a four-month low of 2.8pc.

The yield on Spain's benchmark 10-year bonds also dropped to a record low, as the hunt for returns outweighed concern that the country has had no government for more than eight months.

The DAX rallied 2.5pc to its highest level of the year, taking its advance since a February low to 22pc. The Stoxx Europe 600 Index added 0.9pc. Munich Re climbed 5.7pc after the reinsurer reported quarterly net income that was more than double the average analyst projection.

BMW and Daimler climbed at least 2.8pc after a report showed China's retail car sales surged in July.

"No news from the economic side means investors have an eye on the company side," said Heinz-Gerd Sonnenschein, equity strategist at Deutsche Postbank in Bonn, Germany.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business