Iseq makes modest gains

The Irish market was trading up this morning, tracking a similar rise in European shares.

The Irish market was trading up this morning, tracking a similar rise in European shares.

After an initial climb this morning, the Iseq began to shed some of its gains. By 12.02pm, the index was up 37.46 points to 2,912.78.

While AIB and Bank of Ireland lost some ground throughout the session, Irish Life and Permanent and FBD managed to hold their own. IL&P gained 2.2 per cent to €3.22 early this afternoon, while FBD's gains were more modest, at 0.5 per cent up to €6.78.

Earlier today, brokers noted FBD's exposure to flood damage claims was limited, due to its use of reinsurance policies. Traders said although reinsurance costs would rise, the increases would not be excessive and could be recovered through cost savings or premium rates.

Bank of Ireland slipped 1.1 per cent to €1.44, but AIB was hit hardest, down 3.2 per cent to €1.31.

Shares in other European banks inched higher today, but Spanish and Greek banks remained under pressure, with Banco Santander down 0.9 per cent, BBVA down 0.5 per cent, Piraeus Bank down 3.6 per cent and National Bank of Greece down 1 per cent.

Shares in DCC rose 3.8 per cent today, trading at €19.20. HMV reported this morning that losses had narrowed in the first half of the year. Traders took comfort from it, noting that HMV is one of DCC Sercom's top 10 customers, and it was building market share in a difficult market, when other brands were losing share.

Airlines continued to gain, with both Ryanair and Aer Lingus both gaining during the session. Aer Lingus was up 3.5 per cent to 59 cent, while Ryanair rose 2.8 per cent to €3.07. Aer Lingus later lost some of these gains, falling back to 58 cent.

CRH was also up, rising 2.1 per cent to €18.30. The company yesterday said it would appeal a €25.6 million fine levied against its Polish company after a regulatory investigation said it had been involved in anti-competitive practices in the cement industry there.

European shares were up 0.7 per cent around midday, adding to the previous session's sharp rebound as robust macro data from China spurred gains in resource-related stocks such as BHP Billiton.