Global values fall on Ukraine tensions

Iseq closes up almost 0.3% as Aer Lingus puts on nearly 5% in substantial trading

Aer Lingus had its busiest trading day in five years as its share price closed out the session up 4.8% to €1.37. Photograph: Matt Kavanagh/The Irish Times

Aer Lingus had its busiest trading day in five years as its share price closed out the session up 4.8% to €1.37. Photograph: Matt Kavanagh/The Irish Times

 

Global stocks fell and treasuries extended gains as escalating tensions in Ukraine outweighed optimism on ECB stimulus.

The crisis in Ukraine deepened as the government there said its army destroyed part of a column of military vehicles that crossed the border from Russia.

US and European stocks fell, erasing an earlier rally, while treasuries extended an advance. Irish 10-year bond yields hit a new record low.

The Iseq closed up almost 0.3 per cent. The market traded strongly all day until news emerged of military activity in Ukraine before 4pm, bringing a slightly dull end to trading.

Aer Lingus was the undisputable headline story of the day, its stock rising by 4.8 per cent to €1.37 following substantial volume in sales and speculation that businessman Denis O’Brien had sold the last of his holding in the airline. The carrier had its busiest trading day in five years.

Elsewhere, Kingspan enjoyed a 2 per cent boost while Smurfit also had a healthy day’s trading, closing up 1.5 per cent.

Bank of Ireland finished well, climbing three-quarters of a per cent with analysts happy that, on the back of a strong week with stock now valued at €0.27, demand for the stock is reviving.

Kerry dropped a quarter of a per cent to €56.09 and Fyffes rose 1.6 per cent to hold at a steady €0.92 following a tumultuous week.

LONDON UK stocks pared their advance in the final hour of trading, leaving the FTSE 100 Index little changed.

The broader FTSE All-Share Index rose less than 0.1 per cent today.

BHP Billiton gained 1.2 per cent to 2,050 pence. The company may announce next week a spin-off of assets, according to a statement.

Rio Tinto Group, the second-biggest commodity producer, advanced 0.9 per cent to 3,406 pence. Premier Oil climbed 3.2 per cent to 336.8 pence after UBS raised its recommendation on the shares to buy from neutral. The brokerage said the company intends to narrow the gap between the stock price and net asset value and may boost its share buyback. New World Resources declined 4.8 per cent to 10 pence.

European stocks fell back from a weekly rally, erasing gains in the final hour of trading.

The Stoxx Europe 600 Index fell 0.4 per cent, the most in a week, to 329.72 at the close of trading in London, paring its weekly increase to 1.5 per cent.

H&M climbed 0.7 per cent to 289.8 kronor for its best week since September. Europe’s second-biggest clothing retailer said sales jumped 17 per cent in July. That beat SME Direkt’s estimate for a 12 per cent increase.

US stocks fell, trimming a weekly gain for the Standard and Poor’s 500 Index, after escalating tensions in Ukraine boosted demand for haven assets.

Some 19 S&P 500 companies, including Home Depot and Hewlett Packard, are scheduled to release earnings next week.

About 76 per cent of those that have reported so far this season have beaten analyst estimates for earnings.

Yesterday, eight of the 10 main S&P 500 groups retreated, with financial stocks sinking 0.7 per cent to pace declines. Charles Schwab and E*Trade Financial slid more than 1.5 per cent.

Nordstrom slid 4 per cent to $65.94, the lowest since May. The largest US luxury department-store chain reported same-store sales that missed estimates in the most recent quarter.

Monster Beverage soared 27 per cent to a record $91.16. Soft drinks giant Coca-Cola agreed to swap some brands and buy a 17 per cent stake in the company for about $2.15 billion, increasing its exposure to the growing energy-drink market. – (Additional reporting, Bloomberg)