Paddy Power lifts Iseq higher

The bank holiday in the UK today meant trading levels on the Iseq index amounted to mere trickles, as the overall Dublin market closed up 1.7 per cent.

Bookmaker Paddy Power was one of the main movers in percentage terms, climbing almost 6 per cent to €35.50 ahead of its interim results tomorrow, however trading volumes were extremely light.

While its Irish retail business may have underperformed in the period due to lower than expected margins from major racing events, the diversified nature of the bookmaker's business means its overall performance is harder to call.

Builders' merchants and DIY group Grafton, which is due to publish its first-half results on Wednesday, rose 3 per cent in trading to close at €2.78. Grafton indicated in July that the figures will show growth, although analysts have since pointed to a slowdown in the UK construction market on which its business depends.

The results will be noteworthy for the fact that they are the first to be announced under the leadership of Grafton's new chief executive, Gavin Slark.

Building materials group CRH, the largest stock on the index, clocked up a 3 per cent gain, closing at €11.74, while insulation group Kingspan also advanced, rising 3.45 per cent to finish at €6.

Elsewhere, major stocks such as Ryanair, Elan and Smurfit Kappa managed to end the day in positive territory, though food group Kerry finished flat.

Across Europe, shares also rose on low volumes, buoyed by US economic data and the anticipation among investors that the US Federal Reserve will move again to stimulate growth in the world's largest economy.

The European Commission also contributed to the more stable mood by saying a fresh round of bank recapitalisations was not required, dismissing remarks made by the new head of the International Monetary Fund, Christine Lagarde, over the weekend.