UTV up but European stocks decline for third day in row
THE ISEQ closed almost unchanged yesterday as gains in UTV were offset by declines in the banks.
The ISEQ Overall Index closed up 3.86 points, or 0.1pc, at 3170 points. The biggest mover was UTV, which climbed 22pc to €1.40 after a boardroom bust-up sparked rumours that investment company TVC might make a bid. Closely held TVC advanced 3.9pc to 80 cent.
Other movers included Independent News & Media which advanced 6.5pc to 25 cents after APN posted better-than-expected results. INM, the publisher of this newspaper, owns almost 31pc of the Australia-based media company.
Stocks in Europe declined for a third day as the European Commission said the region's economy would shrink this year, dragged down by Italy and Spain. National benchmark indexes retreated in 12 of the 18 western European markets. Germany's DAX dropped 0.5pc, while France's CAC 40 was little changed. The FTSE 100 gained 0.4pc.
The Stoxx Europe 600 Index closed down 0.2pc at the close of trading. The gauge has rallied 8pc this year as euro-area leaders took measures to contain the region's debt crisis and US economic data topped estimates.
"The European Commission comments remind us that the situation in the eurozone is not good at all," said Stephane Ekolo, chief European strategist at Market Securities.
In Germany, the Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, climbed to 109.6 in February from 108.3 in January. That's the fourth straight gain and the highest reading since July.
Commerzbank fell 6.6pc after Germany's second-largest lender said it wouldn't pay a dividend for 2011 and would ask investors to swap hybrid capital instruments trading below face value for new shares, in a plan to boost its financial strength.
Vallourec, a French producer of steel pipes for the oil and gas industry, tumbled 6.4pc after the company reported a fourth-quarter profit that beat analyst estimates and forecast a lower profit margin this year.
Deutsche Telekom lost 3pc when it forecast earnings will fall further this year after posting a €1.34bn quarterly net loss because of writedowns on T-Mobile USA and its Greek business.