DUBLIN REPORT: Iseq:2,886.37 (+36.74) Settlement date:December 7th
THE IRISH market outperformed Europe yesterday, as the Iseq’s minnow stocks surged ahead.
Although the biggest constituent in the Iseq, CRH, contributed to the strong session, gaining almost 2 per cent, brokers noted that it was the index's second-line stocks that really lifted the market.
IEX-listed Norkomand Merrion Pharmaceuticalsboth gained more than 5 per cent to close at €1.28 and €3.60 respectively, albeit on light volume.
Total Producewas up over 6 per cent on the day at 35 cent, while Fyffesclosed up 3.5 per cent at 44 cent. Elsewhere in the food sector, Greencoremade good ground, gaining close to 6 per cent – or 8 cent – at €1.48.
Paddy Powerjumped almost 2 per cent – or 47 cent – to just under €25.33. This was a low close, as the stock had traded up as far as €26 earlier in the session.
Packaging group Smurfit Kappawas also a winner, marking up by 14 cent to €5.70.
The main newsflow affecting the market related to former State carrier Aer Lingus. Although the airline has failed to reach agreement with unions on a €97 million cost-saving plan, brokers noted that investors reacted positively to this news as they believe new chief executive Christoph Mueller is taking "an iron fist approach" with the unions. The stock closed up more than 5 per cent at 56 cent.
Goldman Sachs upgraded its rating on Bank of Irelandfrom "neutral" to "buy" yesterday, but brokers said this didn't have much "positive feedthrough" for the stock, which closed up just 2 cent at €1.64, although it did spike to €1.70 earlier in the session.
The other financials put in a stronger performance, with AIBadding almost 7 cent – more than 4 per cent – to just under €1.59, and Irish Life & Permanentclosed up almost 12 cent at just under €3.30.
