ISEQ rises with European peers
EUROPEAN bourses traded in positive territory yesterday as the European Central Bank kept rates at a record low of 0.5pc and Mario Draghi said the bank remained ready to act to lend momentum to economic recovery.
He said he was "very, very cautious" about any signs of that recovery. Good economic news from the United States also spurred investors.
"Draghi's comments reinforce the view that the central bankers are in no mood to rush any rate rise and in no mood to spook the markets," said Justin Urquhart Stewart, who helps oversee about $6.8bn (€5.2bn) in funds at Seven Investment Management in London.
"He wants to put recent good economic news into context – from a flat, dull position, we at last can see the first shafts of light."
In the United States, increased spending on cars and housing helped the economy maintain a "modest to moderate" pace of expansion from early July through late August, even as borrowing costs increased. Yesterday, US data showed fewer Americans than forecast filed applications for unemployment benefits last week.
The ISEQ Overall Index rose in tandem with European peers, ending the session 1.28pc, or 53.38 points, higher at 4,215.93. Movers included recruitment firm CPL Resources, which edged down very slightly to €6 even after it posted record full-year revenue and a solid rise in profits. Fyffes ended the day unchanged, having earlier been as much as 2pc higher. The fruit company raised its full-year earnings target after revenues rose 6pc in the first half of the year. Its shares closed at 76 cent.
Independent News & Media gained 8.7pc to 5 cent as it held its AGM. Chairman Leslie Buckley told shareholders the group was in a "much better place" than it was a year ago.
Shares in Ryanair edged slightly higher after Wednesday's rout, closing at €6.04. CRH gained 3.3pc to €16.99.
National benchmark indices advanced in 16 of the 18 western European markets open yesterday. France's CAC 40 gained 0.7pc, while Germany's DAX added 0.5pc. The UK's FTSE 100 climbed 0.9pc.