Stocks up for first time in four days

UK STOCKS advanced for the first time in four days yesterday. The FTSE 100 Index gained 0.1 per cent. This compared with Dublin’s Iseq index, which added 0.6 per cent during the day.

German stocks also rose, following Tuesday’s decline which was the largest in more than 11 weeks.

The advance of the world’s biggest maker of enterprise-management software, SAP AG, offset disappointing factory output and business confidence reports. SAP contributed most to the benchmark DAX Index’s gain, climbing 4.2 per cent after reporting third-quarter software-license revenue that beat predictions.

DUBLIN

DIY SPECIALISTS and builders’ merchants business Grafton was one of the winners on the day, rising by 5.92 per cent to close at €3.40.

Insulation specialists Kingspan also did well, rising by 1.5 per cent to close at €8.12.

Drinks group C&C, which announced on Tuesday that it is to buy Vermont Hard Cider Company in the US for $305 million (€234.15 million), as it reported first-half profit that missed estimates, was another popular share. It closed the day up 1.32 per cent, at €3.85.

Other shares that exceeded the rise in the Iseq included Aryzta, up 1.18 per cent to €37.84, Ryanair, up 1.02 per cent to €4.47, and ICG, up 1.07 per cent, to €18.85.

Share prices that moved in the opposite direction included Dragon Oil, down 1.20 per cent to €6.91, IFG, down 1.15 to €1.38, and DCC, which fell just 0.29 per cent, to close at €22.08.

The market’s main stock, international building materials giant CRH, closed up 1.26 per cent, at €13.68.

LONDON

THE FTSE 100 Index gained 0.1 per cent to 5,804.78 in London. The equity benchmark has rallied 10 per cent from this year’s low on June 1st as European Central Bank president Mario Draghi pledged to do everything to protect the euro. The broader FTSE All-Share Index climbed less than 0.1 per cent.

In China, the preliminary reading of a purchasing managers’ index released by HSBC Holdings and Markit Economics increased to 49.1 in October. The final level in September was 47.9. A reading below 50 indicates contraction.

ARM Holdings rose 5.6 per cent to 675.5 pence, the highest price since November 2000. Exane raised its price target for the shares by 6 per cent to 670 pence. ARM’s customer Apple unveiled its iPad Mini on Tuesday with prices starting at $329.

Reckitt Benckiser, the maker of Lysol cleaners and Nurofen painkillers, advanced 3.7 per cent to 3,768 pence, the highest since at least 1988. Third-quarter non-pharmaceutical sales rose 5 per cent on a comparable basis, the company said.

Argos Outlets Home Retail Group, the owner of Homebase do-it-yourself stores, rallied 1.5 per cent to 105.7 pence. The company may close or relocate 75 of its Argos outlets and add more online items to revive earnings, which slumped 37 per cent in the first half. Pretax profit declined to 17.9 million pounds in the six months ended September 1st.

Punch Taverns rose 2.2 per cent to 6.55 pence. The company, which owns more than 4,500 UK pubs, said it is in discussions with shareholders as it prepares to restructure £2.4 billion of mortgage-backed bonds.

The company reported earnings before interest, taxes, depreciation and amortization of £238 million in the year ended August 18th, lower than last year’s £258 million.

EUROPE

EUROPEAN STOCKS advanced, after tumbling the most in four weeks on Tuesday, as technology companies rallied, outweighing worsening economic data from the euro area.

SAP AG gained 4.2 per cent after the world’s biggest maker of business-management software raised its full-year revenue target as license sales beat estimates.

STMicroelectronics gained 4.2 per cent to €4.85 after Europe’s largest chipmaker said it will cut costs by $150 million a year by the end of 2013 and will temporarily close plants. The company forecast that fourth-quarter revenue may fall as much as 5 per cent amid weakening demand in Europe.

NEW YORK

US STOCKS were little changed yesterday, supported by a slight pickup in manufacturing and a surge in new home sales, while Boeing gave the Dow a boost after raising its full-year forecast.

The muted afternoon action suggested the market was attempting to find its footing after a 3.3 per cent fall in the SP 500 over the past four sessions. Weak earnings outlooks and top-line revenue misses from large multinational companies reignited worries about a slowing global economy.

Facebook surged 21.2 per cent to $23.64 after the social networking company increased mobile advertising revenue several times in the third quarter, a much quicker pace than expected. – (Additional reporting Bloomberg, Reuter)