Upbeat global investor sentiment aids Iseq advance

Iseq:2,976.24 (+19.82) Settlement date:April 29th

THE ISEQ index climbed almost 0.7 per cent yesterday, amid upbeat global investor sentiment following positively received first-quarter earnings updates from a number of US and European corporations, including Swiss bank UBS and American motor company Ford.

However, volumes were light after the four-day Easter weekend.

Building materials group CRH, the largest stock on the index, closed up ½ per cent at €16.51, as global construction company Masco reported a 4 per cent fall in first-quarter sales. Analysts suggested the Masco figures indicated the outlook for residential construction remained subdued for companies in this space – some 10 per cent of CRH’s earnings are exposed to the US residential sector.

The food sector produced the highest climbers and fallers on the day, with Kerry ending up 2.2 per cent at €28.30 and Fyffes closing down 4.65 per cent at 41 cent, a fall of 2 cent. Drinks group CC closed up 2.2 per cent at €3.40.

Greencore, meanwhile, was flat at €1.13. Another player in the food-to-go sector, Uniq – a potential acquisition target for Greencore – reported full-year results showing a 6.8 per cent increase in sales as well as a swing into profit. Greencore has been tipped to buy Uniq, which is a leading supplier to Marks Spencer.

Interim results for Associated British Foods are due today.

Insurance group FBD fell 4.5 per cent to €7.10 as investors took the view that a possible levy on non-life insurance companies to recoup €620 million lost from the Quinn Insurance collapse would not be helpful for FBD.

Paper and packaging group Smurfit Kappa rose 1.2 per cent to €9.40, while there were also gains for Ryanair, which closed up 0.9 per cent at €3.36 and Aer Lingus, which rose 1.2 per cent to 83 cent.