Ryanair soars to help push ISEQ up
THE ISEQ rose by almost 2.6pc yesterday as shares in low-fares carrier Ryanair and packaging firm Kappa Smurfit soared.
European shares were little changed after climbing for five straight weeks, while US stocks rose as a rally among small-cap and internet shares offset a drop in AT&T.
In the UK, stocks retreated when AstraZeneca rejected a new takeover bid from pharmaceutical giant Pfizer.
"The likely thinking at AstraZeneca is that the valuation is low in the event that new drugs could be invented and growth came back," said Peter Garnry, head of equity strategy at Saxo Bank in Hellerup, Denmark. "But the business is not small and it would require a major blockbuster to really move the needle. There is rarely a fourth attempt to dance in a takeover bid so, based on the developments over the weekend, the probability for a deal is now very low."
Back in Dublin, the stock exchange closed at 4776.61, up 122.52 points or 2.63pc, after suffering a 3pc fall last week, its highest daily drop in two-and-a-half years.
The main movers on the day included Ryanair, up more than 10pc to €7.02, despite earlier reporting its first fall in profits in five years. Ovoca Gold was up almost 12pc and mobile phone gaming firm Zamano was up 25pc.
Allied Irish Banks, Independent News and Media and packaging firm Smurfit Kappa all saw shares rise by around 5pc.
Oil exploration firm Aminex was down 8pc, followed by fruit company Fyffes and Kenmare Resources, both down 2pc. Irish Continental also saw a 2pc dip despite earlier reporting a 5.8pc rise in revenue to €76.7m for the first four months of 2014.
In the US, the Standard & Poor's 500 Index added 0.4pc in New York, following the gauge's first back-to-back weekly losses since January.
The Stoxx Europe 600 Index lost 0.1pc to 338.56 yesterday afternoon.