Saturday 16 December 2017

Irish banks boosted by rate hold reaction

Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell
Traders work on the floor of the New York Stock Exchange (NYSE) shortly after the opening bell

Sean Duffy

Shares in Ireland's three biggest banks rose along with their European counterparts, as investors reacted positively to the news that the European Central Bank is to continue loose money policies.

Bank of Ireland shares closed up 6.7pc, while State-owned AIB jumped by 3.7pc.Permanent Tsb also gained 1.7pc.

The ECB president Mario Draghi said that the Bank had no definite plans to alter its quantitative easing programme.

"Sometimes it's ... important to say what we did not discuss. And we didn't discuss tapering or the intended horizon of our asset purchase program," he said.

Meanwhile, the British government will do whatever is needed to ensure the stability of the financial services sector and markets during the process of negotiating Britain's exit from the European Union, Brexit minister David Davis.

London's FTSE100 index rallied late on to close up 0.16pc. The German DAX gained 0.6pc, and France's CAC 40 climbed by 0.5pc.

In Dublin, the ISEQ overall index of Irish shares was up by 0.84pc at 6050.4.

Hotel group Dalata rose by 3.7pc, while Ryanair clawed back some of the losses made earlier this week, with gains of 3.2pc.

The day's worst performing stocks were drinks maker C&C and Smurfit Kappa, both of whom were down by 1.1pc.

Pernod Ricard revenues rose by 4pc in the first quarter of the company's fiscal year, well ahead of market expectations.

Sales of Irish whiskey brand Jameson have risen in the United States, which has bolstered the Pernod Ricard balance sheet.

Shares in the company were up over 2pc in the wake of the announcement.

On commodities exchanges, the price of oil fell back by 2pc.

Irish Independent

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business