DUBLIN REPORT: Iseq:2739.72 (+29.05) Settlement date:October 11th
THE ISEQ index continued its positive start to the week with a climb of more than 1 per cent yesterday, as buyers across Europe got behind equity markets amid speculation that central banks around the world will follow the Bank of Japan in announcing economy-boosting measures.
Benchmark indexes rose in almost all western European markets, with the Dublin market slightly outperforming stocks in London, France and Germany as the Iseq shrugged off the downgrade of Ireland’s sovereign debt to “A+” by the credit ratings agency Fitch.
The main stock-related news of the day was AIB’s statement that it has begun the disposal process for its 22.4 per cent shareholding in MT Bank, the Buffalo, New York-based lender.
This put both MT’s share price and that of AIB under pressure, with the Irish bank eventually finishing the day down 6 per cent at 44 cent.
There were better fortunes for Bank of Ireland, which climbed 1.8 per cent to 67 cent on heavy trading volumes, while Irish Life Permanent added a cent to close at €1.49.
Building materials group CRH achieved a 3.4 per cent gain, taking it to €12.73, as construction sector analysts noted that Fitch’s downgrade of its debt on Monday would have minimal impact on funding costs.
There were better fortunes for agri-food group Origin, which rose 3.5 per cent to €2.90 amid upward pressure on global food commodity markets.
Drinks group CC fell 1.6 per cent to €3.05.
Analysts at Davy Research reduced its earnings forecasts for paper and packaging group Smurfit Kappa as a result of changes to its currency movement assumptions, but retained its “outperform” rating on the stock, which rose 1.7 per cent to €7.68.
