ISEQ bounces back from heavy losses on rocky day
IRISH shares rose as shares bounced back from Tuesday's heavy losses. By the close in Dublin the ISEQ Overall Index had gained 19.58 points, or 0.61pc to close at 3,211.41.
More than three times as many stocks rose as fell yesterday, albeit on unusually light volume. Less than 19 million shares changed hands on the Dublin market. The index actually fell as low as 3,186 early in the day, as traders buckled up for what promised to be a bumpy session, before recovering in the afternoon. The index dropped again during the final two hours of trading but bounced back to end the session in positive territory.
Food and construction plays drove the market for most of Wednesday. Drinks company C&C added 1.3pc to close at €3.85.
The company revealed on Tuesday it had agreed to buy a US cider business in a deal worth some €234m.
The baker Aryzta and its agronomy off-shoot Origin enterprises both climbed. Aryzta added 1.2pc to hit €37.84 while Origin added 2.2pc to end the day at €4.35.
Construction firm CRH rose 1.3pc to €13.68 while insulation firm Kingspan in turn increased 1.5cp to reach €8.12.
Only five stocks fell yesterday, led by Dragon Oil, which slumped 1.2pc. Elsewhere, European stocks advanced, after tumbling the most yesterday in four weeks, as technology companies rallied, outweighing worsening economic data from the euro area.
The Stoxx Europe 600 Index rose 0.4pc, while national benchmark indices climbed in 15 of the 18 western-European markets. France's CAC 40 advanced 0.6pc, Germany's DAX rose 0.3pc and the UK's FTSE 100 added 0.1pc.
"People were expecting a pretty undynamic earnings season given the macro drop, so there are few surprises on that front," said Philip Saunders, a portfolio manager at Investec Asset Management.
"Clearly some leading stocks have disappointed, but beneath the surface, there is some good news as well."
SAP rallied 4.2pc after the company said sales of new licenses, an indicator of future revenue, increased 12pc.
The company also forecast that growth in software and related services sales will reach the upper end of a range of 10.5pc to 12.5pc this year.
STMicroelectronics gained 4.2pc after Europe's largest chipmaker said it will cut costs by $150m a year by the end of 2013 and temporarily close plants. The company forecast that fourth-quarter revenue may fall as much as 5pc amid weakening demand in Europe.