Trading subdued on most markets

FINANCIAL MARKETS had a quiet day as investors await the next steps in the will-they-or-won’t-they saga concerning Spain and a request for a bailout following a local election victory for Madrid’s prime minister Mariano Rajoy.

Most European markets posted slight losses yesterday as investors adopted a wait-and-see approach on the next steps facing Spain and speculated that the election result may delay a bailout request.

DUBLIN

IRISH SHARES lost less than 0.1 per cent of their value, outperforming European markets but trading was described as subdued.

“The absence of any major news out of Europe or the US meant that everything really just sat still,” said one Dublin stockbroker.

Dragon Oil traded almost 2 per cent weaker, declining 11.5 cent to €6.85 a share ahead of an interim management statement from the company tomorrow.

Irish exploration group, Petroneft, closed up 12.5 per cent or one cent to close at 48 cent a share, making it the biggest mover on the day. The company traded up 15 per cent to 6.88 pence sterling in London where more than 26 million shares changed hands. Overall, more than one fifth of its issued shares were traded.

Petroneft reported that the second production well in its Arubzovskoye field in Siberia has been completed and produced flow rates of 540 barrels of oil per day initially, which was well ahead of target. The first produced over 300 barrels per day, and the company plans to drill 10 such production wells in the field.

The addition of the second Arubzovskoye well brings the company’s gross production to 2,700 barrels a-day.

Shares in drinks company CC closed up almost 1 per cent or nearly four cent at €3.77 ahead of the company’s half-year results today for the financial six-month period to September when investors will be watching for sales during the summer and whether cider sales are being sold in any greater volumes overseas.

The big shares on the Irish exchange were little changed with Ryanair and packaging company Smurfit Kappa falling slightly.

Bank of Ireland rose 2 per cent to close at 9.6 cent but again on light volumes.

LONDON

UK STOCKS declined for a second day as Japan’s exports tumbled and US companies reported sales that trailed forecasts.

Aggreko slid 3 per cent after UK bank HSBC cut its rating on the stock. Fresnillo and Randgold Resources led basic-resources shares higher. The FTSE 100 fell 0.2 per cent.