Iseq follows other markets higher

The Iseq index of Irish shares outperformed European markets as positive corporate news and returning investor confidence buoyed leading stocks today.

The index closed up 3.67 per cent at 2,576.81 on the back of strong performances from the likes of CRH and Smurfit Kappa, both of which had looked oversold last week.

In Europe, the Dow Jones Stoxx 600, which measures leading stocks across 18 western European markets, was up 2.9 per cent ahead of the close of business today.

London’s benchmark FTSE 100 was up 125.87 points, or almost 2.5 per cent, at 5,394.53.

The Dublin market’s biggest stock, building materials group, CRH, jumped 5.7 per cent to close at €12.43. The move for the stock helped boost the overall index as the group’s weighting is over 20 per cent.

Packaging group, Smurfit Kappa, was the strongest performer today, adding 10.45 per cent to close at €5.517. The stock has enjoyed a reasonable run over the last few days and dealers said that it had been over sold during the recent bout of volatility, and was starting to look attractively priced to investors.

They said that similar sentiment towards CRH helped drive its gains today.

Aer Lingus followed Smurfit closely, with a 9.3 per cent gain to 64.5 cent. The airline reported earlier today that it made profits of 26 million in the second quarter, while yields and forward bookings were strong.

DIY and builders’ merchant, Grafton, reported a 13 per cent boost to first half profits today, but investor reaction was rather more muted, as it gained 0.96 per cent to close at €2.726.

Brokers suggested that investor sentiment towards the construction and DIY sectors is weak at the moment.