Relief rally across global markets
Doubts about US military strikes on Syria helps boosts investor confidence Potential deal on IAG takeover of Norwegian Air gives European airlines a lift
Ireland’s benchmark Iseq index outperformed wider European markets yesterday, rising 0.95 per cent.
European shares rose alongside a relief rally across global markets after US president Donald Trump signalled that military strikes in Syria may not be imminent. However, the signals were not sufficient for UK investors, and Britain’s FTSE 100 remained flat on the day.
Chatter surrounding a potential takeover of Norwegian Air by Aer Lingus owner IAG gave European airlines a lift . Budget airline Ryanair increased 1.64 per cent on the Iseq to €16.09.
Momentum in the banks has been strong following remarks from European Central Bank policymaker Ewald Nowotny earlier in the week. He said he would have no problem moving the deposit rate from -0.4 per cent to -0.2 per cent. As a result both AIB and
Bank of Ireland moved up on the day. Shares in AIB increased 3.79 per cent to €5.15, while Bank of Ireland edged up 1.91 per cent to €7.48.
It was a mixed day for property plays on the Irish market, with some homebuilders and real estate investment trusts edging up while others lost out. Among the losers were Glenveagh Properties, dropping 1.23 per cent to €1.124, and
Green Reit, falling 0.27 per cent to €1.49. Meanwhile,
Cairn Homes pushed up 0.57 per cent to €1.76 on the day, while Hibernia Reit closed higher by 1.7 per cent at €1.436.
While Glenveagh was the loser on the Iseq 20, it was Independent News and Media that fell the most on the wider Iseq overall index. The newspaper group fell 5.88 per cent to €0.08.
Britain’s leading stock index ended the day up 0.02 per cent. Shares in British Airways owner IAG fell 1.1 per cent after the airline said it was considering making an offer for low-cost carrier Norwegian. Norwegian’s shares, which are the most-shorted among European airlines, rose 47 per cent on the bid news. Among mid-caps, shares in British bus and rail operator FirstGroup rose 8.2 per cent after a takeover offer from US private equity firm Apollo Global Management.
Shares in retailer Dunelm rose 8.8 per cent after it reported a jump in third-quarter online sales which boosted revenue growth. Small-cap Carpetright’s shares sank 9.4 per cent after the flooring retailer said it planned to close 92 stores and reduce rents at 113 of its sites in a restructuring effort.
The pan-European Stoxx 600 index closed up 0.7 per cent after a negative start as sentiment improved during the day.
Shares in Sulzer rallied 19.5 per cent after the Swiss pump-maker said it freed itself of US sanctions after authorities approved its buyback of shares that has reduced to less than 50 per cent the stake of Russian oligarch Viktor Vekselberg, chairman of holding company Renova.
Shire rose 2.6 per cent after sources told Reuters Takeda had sounded out creditors for loans to help finance a possible bid for the British rare disease specialist.
Technology and financial stocks boosted Wall Street yesterday as US president Donald Trump suggested that a military strike on Syria may not be imminent and investors turned their focus to the upcoming earnings season, which is projected to deliver the strongest results in seven years.
Strong quarterly results from BlackRock and Delta Air Lines added to the sanguine mood. Delta topped profit estimates, sending its shares 2.9 per cent higher and boosting other airline stocks. BlackRock gained 1.8 per cent after the asset manager’s profit rose more than expected.
The Dow Jones rose 324.09 points, or 1.34 per cent, to 24,513.54, the S&P 500 gained 24.64 points, or 0.93 per cent, to 2,666.83 and the Nasdaq Composite added 77.80 points, or 1.1 per cent, to 7,146.82.