Opec decision puts oil stocks in tailspin

Share price falls for energy firms capped gains for top European stocks on Thursday, after Opec resisted pressure to cut supply in the face of a global slump in the oil price.

However, shares were able to edge higher, led up by the German Dax, which extended its recent sharp rally on the back of encouraging data and expectations of further stimulus measures from the European Central Bank.

Oil-related stocks were under pressure, making up the 12 biggest fallers on the index, as oil tumbled $6 and touched a four-year low following Opec’s decision not to cut supply.

DUBLIN

The Iseq ended the day up 1.5 per cent or 78 points at 5,078, reversing the previous day’s decline, with many of its leading players enjoying modest gains.

Ryanair

closed nearly 2.5 per cent up on the day at €8.71, reversing a poor session the previous day which saw the stock fall by 1.9 per cent.

The increase coincided with the news that Britain's court of appeal was likely to rule next month on whether the airline should cut its stake in rival Aer Lingus. This follows the conclusion of a two-day appeal hearing yesterday. For its part, Aer Lingus closed 3 cents up at €1.76 on a modest trading volume.

Food group Kerry closed up 2.8 per cent at €58.70, following news this week that it plans to sell off its loss-making frozen-food arm to focus on its core business.

Bank of Ireland rose 1.5 per cent to stand at 33 cent, while cider maker C&C closed up 2.1 per cent at €3.77, and Aryzta, which operates the Cuisine de France brand, rose 2.6 per cent to €65.19.

In the wake of Opec's decision, Dragon Oil ended the day 2 per cent down at €6.65.

LONDON

UK stocks were little changed as gains in Barclays and British American Tobacco offset a decline in oil stocks.

Barclays

added 2.4 per cent after Goldman Sachs recommended investors buy shares of the bank.

BAT

climbed 1.1 per cent and

AstraZeneca

added 1.3 per cent.

Royal Dutch Shell retreated 3.7 per cent following the Opec announcement on oil output.

The FTSE 100 Index slipped 5.75 points, or 0.1 per cent, to 6,723.42 at the close of trading in London.

Travel stocks were cheered by the oil price fall, with EasyJet up 6 per cent, or 88p, to 1,633p.

Grocer Sainsbury dropped after a broker downgrade from Shore Capital, which said the company was set for a period of sustained earnings-per-share decline while it poured money into staying competitive in the embattled sector. Shares fell 5.1p to 233.9p.

Rival Tesco slid 1.6p to 185.6p, while Morrisons dipped 2.9p to 178p.

EUROPE

The Stoxx Europe 600 Oil and Gas Index extended losses to trade down 4 per cent following the Opec meeting. The energy services sector bore the brunt of the falls, while airlines rose to the top of the index as the falling oil price cut costs.

Seadrill fell 7 per cent to a fresh five-year low. It has lost a quarter of its value in the past two sessions, extending a slump on Wednesday after it suspended its dividend in response to tough market conditions. Swiss-listed shares of Transocean fell 7.9 per cent to an all-time low.

Conversely, British Airways owner IAG rose 4.8 per cent to an all-time high, with UK airlines receiving a boost from the prospect of a passenger tax in Scotland being scrapped.

The FTSEurofirst 300 index of top European shares closed up 0.2 per cent at 1,392.40 points in quiet trade.

The Dax index was up 0.6 per cent, rising for its 11th straight session, bringing the index within 100 points of breaking its all-time high set in June.

NEW YORK

US stock markets were closed because of the Thanksgiving holiday.