Iseq reacts well to US figures as financial stocks gain

DUBLIN: Iseq: 2,881.22 (+17.11) Settlement date: August 12th

DUBLIN: Iseq:2,881.22 (+17.11) Settlement date:August 12th

THE IRISH Stock Exchange was bolstered by positive unemployment data coming out of the United States yesterday, rising slightly to close at 2,881.22.

Brokers said the Iseq and the global economy bounced yesterday afternoon following news the US unemployment rate dropped for the first time in over a year and the Labor Department reporting a net loss of 247,000 jobs in July compared to the anticipated figure of about 325,000.

In the pattern of the day, no-frills airline Ryanairsuffered in the morning markets, dropping 2.721 per cent only to recover in afternoon, trading to close up 0.41 per cent at €3.21. However, Aer Lingusfailed to produce a similar recovery, closing down 2.04 per cent to finish at €0.48.

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Building materials group CRH,the largest component stock on the index, closed relatively flat at €17.40 despite the announcement from the US.

Irish financial stocks also benefited from the positive news, with Bank of Irelandmaking the most gains jumping 4.43 per cent to close at €2.099.

Allied Irish Banksalso followed suit by falling 4.038 per cent in the morning and recovering later in the day to finish at €2.120. However, Irish Life and Permanentremained relatively flat throughout the day, rising just 0.83 per cent to close at €3.63.

Smurfit Kappaattracted strong trader interest in the build- up to the packaging group's second-quarter results due out next week, according to one broker. It closed down fractionally by 1.18 per cent to €4.20.

C&Cfinished in positive territory, rising 1.96 per cent to close at €2.08 while DIY group and builders merchants Grafton Groupdropped off slightly, falling 2.40 per cent to €3.25. One broker said this could be attributed to some profit-taking following a strong 10 days in the market for the stock.