Euronext Dublin soars as hotel and travel sector boosted
Global stocks rise in choppy trading following US Senate’s passage of $1.9tn stimulus bill
One of the best performers on the day was Dalata, which owns the Clayton Hotel group
A gauge of global stocks rose in choppy trading on Monday as investors eyed the yield on US treasuries for signs of inflation pressures in the wake of the US Senate’s passage of a $1.9 trillion (€1.6 trillion) stimulus bill.
Euronext Dublin outperformed its international peers on Monday, ending the day up 2.4 per cent.
One of the best performers on the day was Dalata – the largest hotel operator in the State – which added 6 per cent to its share price on reasonable volume.
“There was a headline suggesting that the contract for hotel quarantining is to be awarded to a single hotel group,” noted one trader. “We think that may have been a factor. Also, generally across the UK and Europe, the travel and leisure sector was trading better.”
In travel, Ryanair was up 6.3 per cent, while its peers also performed well, with Easyjet up 4 per cent, Aer Lingus parent International Airlines Group up 3 per cent and Lufthansa up 5.5 per cent.
It was a good day also for the banks, with AIB up 4.5 per cent and Bank of Ireland up 5 per cent.
The positive sentiment also fed into the construction sector, with building materials group CRH up 4 per cent, insulation specialists Kingspan up 5 per cent and Woodies parent Grafton Group up 5.5 per cent.
“CRH announced it has restarted its buyback programme, which certainly fed into their momentum today,” according to a trader.
In homebuilding, Cairn Homes ended the day up 5.2 per cent while Glenveagh Properties lagged slightly, only picking up 1 per cent.
British stocks ended higher, led by gains in banks and mining stocks as optimism around a swifter economic recovery and the easing of a stringent lockdown lifted spirits.
The blue-chip FTSE 100 index ended up 1.3 per cent, with bank stocks HSBC, Lloyds Banking, and Barclays gaining between 3.6 per cent and 4.3 per cent.
Mining stocks including Rio Tinto, Glencore and Anglo American also boosted the index on stronger metal prices.
Among individual movers, Pearson was among the top performers on the FTSE 100, as the education group’s new boss set out his plan for the company to grow beyond schools and colleges.
Senior rose 7.2 per cent, even as the British aircraft parts supplier swung to an annual loss, hit by Covid-19 related disruptions to flight travel.
Shares of banks and automakers lifted European shares as investors continued to move into economy-linked sectors on hopes of a solid economic rebound from the coronavirus downturn.
The pan- European Stoxx 600 index gained 2.22 per cent, its best one-day performance since early November. The banking sector gained 3.73 per cent to hit a fresh one-year high.
Spain’s Banco de Sabadell jumped 7.1 per cent, while HSBC, Banco Santander and ING Groep rose more than 2 per cent.
Automakers and insurers also rose about 3 per cent, while sectors considered bond proxies, such as utilities and personal and household goods, were among the laggards. Aero engine-maker Rolls-Royce rose 7.3 per cent to top gains on the UK’s blue-chip FTSE 100.
German meal kit delivery company HelloFresh sank 5 per cent after BNP Paribas downgraded the stock to “underperform”.
The S&P 500 and the Dow climbed, led by stocks poised to benefit the most from an economic rebound as the US Senate passed the $1.9 trillion Covid-19 relief aid, while heavyweight tech-related stocks swung between gains and losses.
The Dow was less than 100 points below its record closing high. The materials sector neared an all-time peak, while industrials and financials hit record levels. Only the technology sector was in the red.
Walt Disney jumped about 4.5 per cent as California health officials set new rules that would allow Disneyland and other theme parks, stadiums and outdoor entertainment venues to reopen as early as April 1st.
GameStop surged about 30 per cent after the company said it had tapped shareholder Ryan Cohen to lead a transition to an e-commerce business.
– Additional reporting: Agencies