Sunday 25 February 2018

Markets flat on Opec and ECB inaction

Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Traders work on the floor of the New York Stock Exchange. Photo: Reuters
Peter Flanagan

Peter Flanagan

IRISH shares fell marginally yesterday, as the ECB left rates unchanged and oil cartel Opec failed to agree a cap on production, prompting traders to broadly hold on to their holding in Irish firms.

By the close in Dublin the ISEQ Overall Index had fallen 0.2pc, or 12.73 points, to close at 6,423.01.

The index fell sharply on opening before slowly recovering throughout the day, only for trade to fall away again towards the end of the session.

Aryzta continued to struggle, shedding 2.35pc to close at €35.99. The speciality baker has lost over a fifth of its value since March and was hurt again on Tuesday by a poor trading statement.

Hostelworld fell 3.95pc to €2.34. The lightly traded company's shares fell for the first time since its 30pc drop last week.

Travel technology company Datalex slipped 1.66pc to €3.55. The firm said it will create 100 jobs in Dublin over the next 18 months. IRES Reit dipped 0.85pc to close at €1.16. The biggest residential landlord in the country is known to be on the lookout for more acquisitions in the Dublin area.

ECB President Mario Draghi's actions, or lack of them, prompted a similar trading day across Europe.

The Stoxx Europe 600 Index added less than 0.1pc. The FTSE 100 slid 0.1pc, while the CAC 40 in Paris fell 0.2pc. The Dax Index in Frankfurt gained 0.03pc.

"We know it's extremely difficult for Opec to reach any kind of agreement because the countries don't have the same agendas," said Pierre Mouton at Notz Stucki in Geneva. "Maybe they would have done something if oil prices were at $40 or below. With oil near $50, there is less incentive. The ECB decision did not come as a surprise - nothing was really expected as of today."

Irish Independent

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