European equities at two-year high

European equities rose to a two-year high today as euro zone finance ministers affirmed their commitment to strengthening the safety net for debt-laden peripheral nations and corporate earnings from the likes of SABMiller, Burberry and Rio Tinto provided a boost to investor sentiment.

The Iseq index of Irish shares finished in the black, but it underperformed the major European indices, largely because of the dominant influence on the index of building materials group CRH, which had a sluggish day.

On below average volumes, it limped it down more than 1 per cent at €15.03, as sellers encircled the stock in the afternoon.

It was a generally quiet day for the Dublin market with little news flow. With financial stocks among the top gainers across Europe as finance ministers inched closer towards enhancing rescue facilities for stricken economies, the Irish banks saw their share prices advance as a result.

Bank of Ireland was the key beneficiary, gaining 8 per cent to 36 cent, while AIB crossed the finishing line with a 3.9 per cent rise at 29 cent and Irish Life & Permanent rose by a similar percentage to 84 cent.

However, due to the volatility in banking stocks of late in terms of percentage swings, Dublin-based dealers did not read too much into the gains.

Elsewhere, volumes continued their subdued streak, although Ryanair attracted healthy two-way interest, with more than 7 million shares trading in Dublin.

The airline's stock closed up 1.6 per cent at €3.82, helping to offset the negative drag on the index's value created by CRH's lacklustre session.

Food group Greencore, caught up in the heady throes of a proposed merger with Northern Foods, was also the target of buyer interest. Its share price closed flat compared to the previous day's trading, at €1.28.

Pharmaceutical group Elan was a faller, declining 1.35 per cent to €5.13, while there were gains for CPL Resources and Total Produce.