Tuesday 24 October 2017

ISEQ rises in line with Europe to hit its highest level since 2008

Markets Report

The index hasn't been higher since mid-2008.
The index hasn't been higher since mid-2008.
Colm Kelpie

Colm Kelpie

IRISH shares rose to a level not seen for six years by early afternoon yesterday as European stocks were little changed.

By lunchtime in Dublin, the ISEQ Overall Index rose 0.69pc, or 32.09 points, to 4714.25. The index hasn't been higher since mid-2008.

European stocks were little changed, trading near their highest level since May 2008, before a report on hiring by US companies that may help investors assess the strength of America's economic recovery.

US index futures fluctuated, while Asian shares climbed.

In Dublin, the leaders included Ormonde Mining, which was up 20pc to six cents after reporting that it had received initial environmental approval that should allow it to progress development of a tungsten mine in Spain.

Bank of Ireland was up 2.5pc to 29 cents -- close to its highest level in almost three years -- amid reports that it would be issuing a five-year bond.

GAUGE

Speciality banker Aryzta rose 0.7pc to €57.10, while online recruitment company CPL Resources increased 2.1pc to €7.45.

On the other side of the board, the laggards included drinks company C&C, which fell 1.2pc to €11.02.

Bookmaker Paddy Power also had a poor first half to the day, falling 0.6pc to €62.01. Fruit company Fyffes also fell 0.4pc to 85 cents.

Elsewhere, the Stoxx Europe 600 Index slipped less than 0.1pc to 329.29 at 12:14pm in London after the equity benchmark climbed to its highest level in five years and seven months on Tuesday.

In London, the FTSE 100 was down 0.3pc at 1.18pm, Germany's Dax was little changed, down 0.1pc, and France's CAC 40 was down 0.2pc.

The stocks were largely little changed ahead of the jobs report from the US.

"It's becoming increasingly hard to argue against the resilience of the US economy," said William Hobbs, the London-based head of equity strategy at Barclays wealth-management unit.

"Risk appetite will continue to rise. The private sector can sustain its growth and we are exiting 2013 at a stronger pace than many expected."

A gauge of European banks rose for a fourth day as borrowing costs fell for the region's most indebted countries.

SAP AG added 1.4pc as UBS recommended that investors buy the shares.

J Sainsbury lost 1.7pc after the retailer cut its full-year sales forecast.

German multinational manufacturer KION Group slid 2pc after its biggest shareholder sold a 10.8pc stake in the forklift maker.

US stock-index futures were also little changed, after equities rebounded on Tuesday from a three-day retreat. (Additional reporting Bloomberg)

Irish Independent

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