Business World

Saturday 21 April 2018

Markets jump as Greece approves plan

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

John Mulligan and wires

European bourses jumped to a six-week high as the Greek parliament backed austerity measures that have been demanded as terms for the country's third bailout and continued membership of the euro.

The region's stock markets also hit session highs after the European Central Bank (ECB) pressed ahead with its economic stimulus programme, agreed more funding for Greek banks, and promised further action if necessary.

The ISEQ Overall Index was lifted by the positive momentum, but its gain yesterday was more modest than that of many larger exchanges.

It added 0.65pc, or 41.81 points, to finish at 6,491.76.

Permanent TSB gained 2.7pc, or 13 cent, to exit the session at €5.07.

Fruit group Fyffes added 1.3pc to close at €1.40.Building materials group Kingspan rose 1.6pc, or 35 cent to €22.73.

In the UK, Greencore rose 2pc to £3.09, while Grafton Group added 2.2pc to close at £7.30.

The pan-European FTSEurofirst 300 index rose 1.4pc to 1,608.71 points, its highest level in more than six weeks. The FTSEurofirst is up nearly 20pc in 2015.

The FTSE-100 rose 0.63pc to 6,796.45. Germany's DAX was 1.5pc higher, while France's CAC-40 also rose almost 1.5pc.

Some analysts said stocks could come under pressure in the coming weeks because much concerning Greece's debt problems remains unresolved, and from speculation about the timing of the first US interest rise in eight years.

Telecoms group BT edged slightly higher despite regulator Ofcom saying a possible enforced break-up of the company is one of several options that could be considered to encourage more competition in the UK communications market.

Irish Independent

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