Irish shares outperform on quiet day

IRISH SHARES performed better than other European stock exchanges on a quiet day for market trading across Europe as a reported softening in the European Central Bank’s stance toward burning senior bondholders had little effect on equity investors.

European shares rose following gains at Scandinavian banks SEB and Danske, but this was offset by concerns about Spain’s economy and prospects for second-quarter earnings as companies prepare to report new figures.

DUBLIN

THE ISEQ rose 1.3 per cent, outperforming other European markets primarily due to the performance of building materials giant CRH, which climbed 3 per cent.

The company, which is the biggest stock on the market representing about a third of the index, rose 45 cent to end the day at €15.49 a share, a move that traders attributed to a few buyers.

CRH also traded ahead of its European rivals yesterday.

Such is the thin volume of share trading in the market that just a few purchases in a single share can lead to the bourse outperforming other exchanges around Europe.

“Fairly sluggish” was how one Dublin trader described activity on the third Monday in July.

Packaging giant Smurfit Kappa also benefited from a few buyers in the market as its share price rose 3.3 per cent, making it the bigger main mover on the Irish exchange. It closed up 17 cent at €5.37 a share after favourable news on prices in the packaging market.

Food company Aryzta rose 2.5 per cent or €1 to €40.60.

Building materials and DIY group Grafton ended the day 3.8 per cent lower at €2.64 a share.

Airline Ryanair rose 1.25 per cent or five cent to €4.13.

Bookmaker Paddy Power rose 1 per cent or 55 cent to €53.75 despite weekend reports saying the Government would publish online betting legislation, which includes a tax on internet gambling, before the summer break. The market has already priced the the tax into investor expectations.

LONDON

UK STOCKS closed little changed as the International Monetary Fund cut its outlook for the global economy and investigations into charges of a Libor interest-rate manipulation intensified on both sides of the Atlantic.

Barclays, which paid a £290 million (€370 million) fine for rigging the Libor, or London inter-bank offered rate, fell for a fourth day.

Security firm G4S slumped the most in nine months after saying it may incur a £50 million loss as it failed to provide enough guards for the London Olympics.

The FTSE 100 Index fell 3.7 points, less than 0.1 per cent.

The index has lost 5.1 per cent from its 2012 high on March 16th amid concern the euro area debt crisis is worsening and global economic growth is slowing down.

EUROPE

EUROPEAN STOCKS rose for a second day, extending the Stoxx Europe 600 index’s longest stretch of weekly gains in more than two years, as manufacturing in the New York region expanded more than forecast.

The Swedish bank SEB, the second largest lender in the Baltic region, soared 8.2 per cent after earnings topped analysts’ estimates, making it one of the best performing share prices in Europe.

This pushed rival Danske 3 per cent higher during trading.

The wider European banking share index fell 0.6 per cent, reflecting wider concerns over the impact of the European debt problems on the region’s banks.

The Stoxx 600 advanced 0.2 per cent to 256.73 at the close of trading.

The gauge has climbed for six straight weeks, rallying 9.8 per cent from this year’s low on June 4th, as the European Central Bank and People’s Bank of China cut their benchmark interest rates and euro area leaders eased the repayment rules for Spanish banks and conditions for possible Italian aid.

Germany’s DAX rose 0.1, while France’s CAC 40 fell less than 0.1 per cent.

NEW YORK

US GOVERNMENT bond yields moved close to record lows, oil prices rose and the dollar fell to a one-month low against the yen after weak US retail sales data fed belief among investors that a struggling economy would lead to more stimulus from the Federal Reserve.

Wall Street stocks slipped but came off early lows, partly helped by gains in some financial shares, including Citigroup, which posted a stronger-than-expected profit.

The Dow Jones industrial average was down 0.42 per cent, and the Standard Poor’s 500 index was down 0.29 per cent.

US retail sales fell in June for the third straight month of decline as demand slumped for everything from cars and electronics to building materials, a sign the economic recovery is flagging.

Markets looked ahead to Federal Reserve chairman Ben Bernanke’s semi-annual testimony before congressional panels today and tomorrow. – (Additional reporting : Reuters/PA)