Friday 24 January 2020

Irish shares buck positive trend in Europe as year rally continues

Colm Kelpie

IRISH shares dipped yesterday, bucking the trend in Europe where the major stocks increased.

By early afternoon in Dublin, the ISEQ Overall Index had fallen 0.74pc, or 29.42 points to 3950.66

The index looked set to break its four-day rally.

The laggards included building materials group CRH, which fell 3.4pc to €16.36 after it said a weak economic backdrop and bad weather hit its European sales in the year so far.

The company said its operations in Europe since the beginning of the year were hit by "prolonged winter conditions" which extended through March and up to mid-April.

Exploration company Providence Resources fell 1.4pc by early afternoon to €6.90 after the company posted a loss for the year but looked forward to production at its exploration licences around Ireland.

For 2012, the company saw losses almost double to €24m from €13m in 2011.

Fruit supplier Fyffes was down 2.8pc to €0.69 while bookmakers Paddy Power slipped 0.2pc to €64.90.

On the other side of the board, the leaders included agricultural business Origin Enterprises which rose 2.6pc to €4.82 and Donegal Creameries which jumped 1.2pc to €4.35.

Speciality baker Aryzta rose 0.9pc to €47.79.

Elsewhere, European stocks climbed, with the Stoxx Europe 600 Index extending its highest level since June 2008, as companies from ING Groep to Deutsche Telekom posted quarterly earnings that beat estimates.

US index futures were little changed, while Asian shares gained in overnight trading.

The Stoxx 600 rose 0.4pc to 303.04 by early afternoon in London.

The FTSE 100 was up 0.3pc, France's CAC 40 increased 0.7pc and Germany's DAX was up 0.6pc.

"We've had a very good start to the year," said Veronika Pechlaner, investment manager at Jersey, Channel Islands-based Ashburton Ltd.

"The earnings season so far looks reasonably good, though the hurdle was quite low to start with. Now you've got to look at the revenue outlook for the rest of the year."

Dutch insurance conglomerate ING added 2.2pc as it also said it will bring forward the sale of a stake in its European insurer.

Deutsche Telekom jumped 3.5pc.

Delhaize Group rose 3.3pc after the food retailer said its chief executive will step down by the end of this year.

Standard Chartered slid the most in eight weeks after the bank's operating profit fell in the first quarter.

US stock futures were little changed, after the Dow Jones Industrial Average climbed above 15,000 for the first time on Tuesday, as investors awaited earnings from News Corp and Monster Beverage Corp.

S&P 500 futures expiring in June rose less than 0.1pc early in New York.

Irish Independent

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