Monday 23 October 2017

Irish shares rise in tandem with Europe as US housing rebounds

Colm Kelpie

Colm Kelpie

Irish shares rose yesterday in line with the major European stocks. By the close in Dublin, the ISEQ Overall Index had increased 0.51pc, or 24.53 points, to end the trading week at 4831.18.

European stocks rose to their highest level in six years as mining companies rallied, and a report showed builders started work on more houses in the US last month than economists had forecast.

The leaders in the Dublin market included Ryanair, which rose 2.2pc to close at €6.67. Fruit company Fyffes rose 2pc to 90 cents, while Smurfit Kappa was up 2pc to €18.81.

On the other side of the board, the laggards included bookmaker Paddy Power, which fell 1.6pc to €61, while Aer Lingus slipped 2pc to €1.45.

FBD dropped 0.5pc to €19 and Kingspan slipped 0.3pc to €13.60.

Elsewhere, the Stoxx Europe 600 Index added 0.6pc to hit 335.82 at the close.

The equity benchmark has advanced 1.7pc this week, its second consecutive weekly gain, as the World Bank raised its forecast for global growth in 2014 and 2015.

National benchmark indices gained in 15 of the 18 western- European markets. The UK's FTSE 100 and CAC 40 each added 0.2pc, while Germany's DAX rose 0.3pc.

Sweden's OMX Stockholm 30 Index climbed 0.6pc to its highest level since September 2000.

Boliden, a copper and zinc producer, gained 2pc to 105 kronor.

"European stocks are seeing a good start to the year," said Veronika Pechlaner, an investment manager at Jersey, Channel Islands-based Ashburton. "There are high expectations for European earnings growth this year."

Glencore Xstrata and Rio Tinto both climbed at least 1.5pc. Accor rose 1.6pc as Europe's largest hotel operator said that 2013 profit probably reached the upper end of its forecast.

Royal Dutch Shell fell after saying that higher exploration costs and lower volumes will hurt fourth-quarter earnings.

Across the Atlantic, US stocks fluctuated after the Standard & Poor's 500 Index fell from a record, as investors assessed corporate earnings. The dollar neared a four-month high.

The S&P 500 lost 0.1pc by early evening Irish time. The Dow Jones Industrial Average gained 0.4pc, as American Express rallied.

A gauge of consumer sentiment unexpectedly fell. (Additional reporting Bloomberg)

Irish Independent

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