European shares dip though takeover bid lifts Serena Williams’s racquet maker
Iseq edges higher after five sessions of losses with Aryzta leading list of advancing stocks
Helsinki-based Amer Sports, which owns the Wilson tennis racquets used by Serena Williams, soared on news that it has received a takeover approach.
European shares dipped on Tuesday amid reignited concern about the US trade war with China, though Helsinki-based Amer Sports, which owns the Wilson tennis racquets used by Serena Williams, soared on news that it has received a takeover approach.
The pan-European Stoxx 600 index ended the session down 0.2 per cent, reversing earlier gains, as China told the World Trade Organisation (WTO) it wanted to impose $7 billion a year in sanctions on the US as the trade battle between both countries escalated.
The Iseq overall index edged 0.2 per cent higher to 6,646.72, scraping back some of the ground lost over the previous five sessions.
Aryzta led the list of advancing stocks, surging by 17.3 per cent to €9, after the troubled baked goods company said that a group of banks had conditionally underwritten its planned €800 million capital raise, while its own lenders have also eased its debt covenants.
CPL Resources was also in demand, rising 2.7 per cent to €6.16, as the group said its gross profit rose 16 per cent to €82.2 million in the year to June. Davy analysts said that the planned to increase their forecasts for the recruitment firm for this year by 5 per cent.
Green Reit advanced 1.6 per cent to €1.54 as Goodbody Stockbrokers highlighted the stock’s attractions ahead of the group’s upcoming full-year results.
Greencoat Renewables fell by as much as 1 per cent as the group agreed to pay €136.1 million for Coillte’s shareholding in a portfolio of operating wind farm assets, above the state-owned forestry company’s original €125 million target. However, the stock closed unchanged at €1.05.
Shares in Britain’s dollar-earning multinationals edged down amid rising tensions between Washington and Beijing, while Ashtead rose on results.
The FTSE 100 ended 0.1 per cent lower.
Topping the FTSE 100 was industrial equipment rental group Ashtead, up 3.2 per cent after it said full-year earnings would beat its previous forecast after a 20 percent rise in first-quarter profit thanks to a stronger US business.
Among mid- and small-caps, JD Sports rose 6.5 per cent after reporting a near 19 per cent rise in first-half earnings thanks to overseas growth.
Among single stocks, Amer Sports soared 18.8 per cent as it had received a €4.6 billion takeover approach from China’s Anta Sports Products and private equity firm FountainVest. Aside from Wilson racquets, the group also owns the Atomic and Salomon ski equipment brands.
Video game developer Ubisoft was another strong gainer, up 4.3 per cent after JP Morgan analysts upgraded the stock to “overweight” from “neutral”, saying secular growth in the gaming industry and the shift to digital would drive margins up.
Semiconductor stocks fell after Japan’s Renesas sealed a deal to buy auto chipmaker IDT for $6.7 billion, with some analysts saying the deal was symptomatic of a top in the chipmakers industry.
US stocks were in demand in midafternoon trading, boosted by energy companies and technology stocks, including Apple, although there were lingering concerns about the US trade war with China.
The Dow Jones Industrial Average was up 0.3 per cent, at 25,927.02, the S&P 500 added 0.2 per cent and the Nasdaq Composite moved 0.3 per cent.
Apple rose, a day ahead of an highly anticipated event at which the company is expected to unveil new iPhone models. UBS forecast Apple’s service revenue would grow 20 per cent over the next two years.
The energy index advanced, boosted by a jump in oil prices as US sanctions squeezed Iranian crude exports, tightening global supply.
Shares of companies such as Home Depot and Lowe’s rose for the second straight day as retailers could see a boost in sales in the aftermath of Hurricane Florence. The storm was upgraded to Category 4 ahead of landfall on Thursday.
– Additional reporting, Reuters