Thursday 24 May 2018

Stocks surge on positive earnings

The ISEQ closed up 44.47 points
The ISEQ closed up 44.47 points

European stocks rose to a three-week high as companies from Deutsche Bank to Statoil reported earnings that beat estimates.

In Dublin, the ISEQ closed up 44.47 points, or 0.9pc, at 4880 exactly. Among the gainers were Ormonde Mining, which issued an upbeat report on its tungsten mine in Spain, and Independent News & Media, which pared recent losses. Ormonde advanced 4.9pc to 5.8 cents while INM closed up 5.7pc at 14.8 cents.

Hotel operator Dalata closed 4.8pc higher at €2.95 as new figures showed the tourism sector is booming.

Bank of Ireland advanced in step with other banks across Europe after details were released on the latest stress tests facing European banks.

The Stoxx Europe 600 Index rallied 1.2pc, the most in five sessions, to 338.12 at the close of trading in London.

"There were a lot of earnings reports," said Ricciardo Ricciardelli, founder and managing director at Fero Capital in Dubai. "Most of the figures were fine, except for ABB, which reported poorly. Ukraine is definitely one of the big challenges to stability, but the markets haven't adjusted for the implications of a real conflict."

Economic confidence in the euro area unexpectedly slipped in April, while a final consumer-confidence reading came in at minus 8.6, better than initially estimated.

Separate data showed UK gross domestic product expanded 0.8pc in the first quarter from the final three months of 2013, when it grew 0.7pc.

Norway's Statoil gained 4.5pc while Nokia rose 2.9pc after naming a new chief executive officer and saying it will spend about €5bn on dividends, share buybacks and debt reduction. ABB fell the most in four years after the world's largest maker of power transformers posted quarterly profit that missed estimates.

Orange climbed 3.3pc after France's largest phone company halted a decline in profitability.

Irish Independent

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