Sunday 21 January 2018

ISEQ falls 1.69pc after industrial production slumps

Colm Kelpie

Colm Kelpie

IRISH shares fell yesterday as data showed industrial production slipped in May and slumped 8pc compared with May last year.

By the close in Dublin, the ISEQ Overall Index was down 1.69pc, or 68.88 points, to end the trading day at 4,001.02.

The Dublin market fell throughout the day as the Central Statistics Office figures showed production in the hi-tech, chemical and traditional sectors all dropped.

The laggards included drinks company C&C, which slipped 4.5pc to €3.75, ending a tough week for the company after almost €200m was wiped off the value of the drinks firm on Tuesday after the company admitted profits would be at the lower end of forecasts this year.

Building materials firm CRH fell 4pc to €15.22, while Ryanair dropped 2.8pc to close at €7.25.

Specialty baker Aryzta slipped 1.9pc to finish at €43.

Drug company Elan rose 0.8pc to €10.80, while shipping and transport company Irish Continental closed up 0.6pc to €22.66.

Aer Lingus enjoyed positive momentum for its reported rise earlier in the week in transatlantic profits, rising 0.3pc to €1.60.

Elsewhere, European stocks rose for a second week as the European Central Bank and the Bank of England said interest rates would remain low for an extended period of time.

In the UK, the Bank of England signalled it would leave interest rates at a record low for longer than expected.

The Stoxx Europe 600 Index rose 1.2pc to 288.31 this week.

National benchmark indexes rose in 15 of the 18 western- European markets this week. The UK's FTSE 100 gained 2.6pc and France's CAC 40 climbed 0.4pc. Germany's DAX Index slid 1.9pc.

"The fact that the ECB and the BoE will keep rates low for longer than expected weakened the euro and sterling and this provided a huge boost to the stock market," said Lex Van Dam, a fund manager who oversees at Hampstead Capital in London.

Peugeot Citroen surged 12pc, its biggest weekly gain since May.

Nokia rallied 9.1pc after the Finnish phonemaker agreed to buy Siemens' stake in their joint venture.

US stocks extended a weekly advance.

The Standard & Poor's 500 Index rose 0.6pc, extending its weekly gain to 1.2pc as the US market reopened after the Independence Day holiday.

Irish Independent

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