Glanbia leads way as shares rise
IRISH shares rose, led higher by Glanbia after the Kilkenny-based dairy company confirmed that it plans to sell most of its Irish business to the co-op.
The ISEQ Overall Index closed up 43.16 points, or 1.3pc, at 3370.38 points. National benchmark indexes rose in all 18 western European markets yesterday. Germany's DAX gained 1.7pc and France's CAC 40 increased 1.4pc. The UK's FTSE 100 advanced 1pc as Associated British Foods rallied.
Glanbia was the biggest gainer on the ISEQ, surging 8.2pc to €3.30. That was the biggest one-day gain since March 2009 and brought the advance in the shares so far this year to 14pc. Glanbia Co-op's Liam Herlihy said yesterday he was "very confident" farmers would make the "right decision" when considering the plan to buy Glanbia PLC's Irish dairy unit.
First Derivatives was another stock to enjoy a good day, jumping 5.8pc to €3.65 as the company revealed details of a fresh move into the Japanese market. Another stock to perform well was Dragon Oil which advanced 3.4pc to €5.40 following better-than-expected drilling news the previous day.
C&C rose 3.1pc to €3.51 after the cider maker was upgraded to 'buy' by Dolmen stockbrokers on Monday.
Aer Lingus was among the losers, falling 2.8pc to 70c after the airline said flight cancellations because of volcanic ash cloud have cost the carrier as much as €20m. Ryanair shares rose 1.7pc to €3.83 after chief executive Michael O'Leary said he expects the financial impact of the volcanic ash cloud to be "material but not significant".
Elsewhere in Europe, the Stoxx Europe 600 Index rose 1.4pc to 269.73 in London, the first advance in three days, as Goldman Sachs reported better-than-expected results and as Greece's Finance Minister George Papaconstantinou said the European Union is committed to covering the country's short-term financing.
Deutsche Bank, Germany's biggest bank, rose 2.2pc as two people with knowledge of the matter said Securities and Exchange Commission officials voted three-two to pursue the case against Goldman Sachs.
Fiat jumped 9.3pc after the Italian carmaker said it may name Agnelli family-member John Elkann as chairman as it revives a plan to spin off the auto-making division. Daimler surged 7.4pc after the world's second-biggest maker of luxury vehicles raised its profit forecast for Mercedes-Benz cars and its truck unit. BMW jumped 4.2pc and Volvo rose 1.9pc.
"Concern over Goldman Sachs has eased and the earnings are again absorbed more positively," said Gerold Kuehne at LLB Asset Management.
Goldman Sachs reported a first-quarter profit of $5.59 a share, beating the $4.14 average estimate of analysts surveyed by Bloomberg, on record fixed-income trading revenue.