ECB stimulus hopes a boost to investors
Mining stocks regain some momentum following increases in oil and metals prices
Bank of Ireland climbed 2.21 per cent to 32.4 cents. Volumes were decent, with 292 million shares changing hands
Markets bounced back from an earlier slide as hydrocarbon and mining stocks regained some momentum following increases in oil and metals prices.
Hopes that the European Central Bank will take new measures to support the troubled region’s economy also buoyed investors. Senior figures there said there was a growing consensus that stimulus was needed with the remaining questions being how to go about this.
Analysts said that signs of a stabilisation in crude oil prices, which moved above $60, helped to calm nerves.
DUBLIN Overall trade reflected the general pattern in Europe on what dealers said was largely a quiet day with a few notable spots of activity.
News that hotel group Dalata is to buy most of rival group Moran Bewley’s for €455 million left its shares unchanged at €2.89. It plans on issuing 18.3 million new shares at €2.75, 12.2 million of which will form part of the consideration for the takeover.
Bank of Ireland climbed 2.21 per cent to 32.4 cents. Volumes were decent, with 292 million shares changing hands.
Multinational packaging group Smurfit Kappa slid 2.84 per cent to €17.295. Another heavyweight, building materials group, CRH, was nudged up 0.49 per cent to close at €18.54.
Elsewhere, property investor Green Reit tumbled 1.6 per cent to close at €1.23. Ryanair, which this week may hear the outcome of its appeal against an order to cut its Aer Lingus stake to 5 per cent from 29.8 per cent, was up 1.29 per cent at €9.401.
Brent crude, which is still down nearly 50 per cent in six months, moved above $60 a barrel as US data showed falling inventories. The move boosted Irish-based Tullow Oil, which climbed 3.59 per cent to 395.1 pence.
Lloyds Banking Group fell 2 per cent to 75.35p. The group which manages the British state’s shareholding said Britain would sell more shares in Lloyds in the next six months.
Dixons Carphone rose 3.05 per cent to 439.7 pence after the electricals and telecommunications retailer posted an increase of 30 per cent in first-half profit.
EUROPE Energy stocks led a rebound across Europe following losses early in the day. French oil giant Total climbed 3.6 per cent in Paris while Shell added 3.2 per cent as the sector posted its biggest two-day jump since October 2011 after slumping to a five-year low.
Luxury goods group LVMH Moet Hennessy Louis Vuitton gained 2.5 per cent to close at €125.85 after distributing a stake in Hermes International to its shareholders. Christian Dior, which also distributed shares, rose 3.2 per cent and Hermes jumped 8 per cent.
UCB fell 1 per cent after the sale of its US generic-drug business to two private-equity firms for $1.53 billion fell apart.
Shares of the Herzfeld Caribbean Basin Fund, which holds stocks and assets that fund manager Thomas Herzfeld believes would benefit from an eventual end to the US economic embargo against Cuba, hit a seven-year high as President Barack Obama announced a move to normalise relations between the US and Cuba.
The fund was up 32 per cent in the early afternoon.
Also following the announcement, shares in cruise line operator Carnival Corp were up 2.8 per cent. FedEx shares fell 4.7 per cent after the package delivery company reported lower- than-expected quarterly profit.