Thursday 23 November 2017

Healthy gains despite Wall St closure

USA, New York, Wallstreet, Stock Exchange
USA, New York, Wallstreet, Stock Exchange
John Mulligan

John Mulligan

Tempests were absent at European bourses yesterday, with healthy gains being posted despite Wall Street being closed again due to Superstorm Sandy.

The gains came as major firms posted results that beat estimates and even as Spain said its economy remained in recession between July and September, with its gross domestic product contracting 0.3pc.

That contraction also came as Spain's bad bank, Sareb, said it will buy failed property assets at an average 63pc discount as the state seeks outside investors to become shareholders in the €60bn toxic bank scheme.

Economic confidence in the euro area also fell to the lowest in more than three years in October, the European Commission said. Retail sales in the UK during October rose more than had been anticipated, however.

Third-quarter profits at BP and Deutsche Bank helped spur investors.

"Once again, we're seeing good resilience of European companies," said Jacques Porta, who helps manage $627m at Ofi Patrimoine in Paris. "Expectations were so negative that there haven't been many bad surprises."

The ISEQ Overall Index was buoyed in line with other European exchanges. It added 0.9pc, or 29.26 points, to end the session at 3,256.49.


Among the movers yesterday was Aer Lingus. It advanced 1.9pc, or 2 cent, to €1.05 even as staff prepare for a two-hour work stoppage next month due to an on-going pension dispute.

Building merchanting firm Grafton Group advanced 2.7pc, or 9 cent, to €3.40 while pharmaceutical firm Elan rose 2.9pc, or 24 cent to €8.45.

Decliners yesterday included recruitment firm CPL Resources, which shed 3.9pc, or 13 cent, to €3.17.

National benchmark indices advanced in 15 of the 18 western-European markets. Germany's DAX climbed 1.1pc, the UK's FTSE 100 gained 1pc and France's CAC 40 rallied 1.5pc.

BP jumped 4.2pc to 442.85p, the largest jump in 11 months. The company said third-quarter net income rose to $5.4bn from $5bn in the same period of 2011 and raised its dividend by 12.5pc to 9 cents a share.

Shares in Deutsche Bank rose 4.5pc to €34.80. The lender said third-quarter profit rose 3pc after investment-banking revenue exceeded targets. Net income climbed to €747m in the three months through September from €725m a year earlier.

Danske Bank shares slumped 9.4pc to 94 kroner in Denmark, the biggest drop since February 2011.

UBS climbed 5.9pc to 13.89 Swiss francs, its highest price since July 25, 2011. The bank said it plans to save about 3.4bn francs in additional annual costs by the end of 2015 as it reduces headcount by 10,000 to about 54,000.

Irish Independent

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