Investors focus on oil price increase and luxury-good makers
Ryanair, due to report third-quarter results on Monday, ends the day up 0.96 per cent
Low-cost airline Ryanair finished Wednesday up at €11.025. Photograph: Paul Faith/AFP/Getty Images
Stocks shrugged off any impact from the latest phase of the UK’s internal row over its departure from the European Union, dealers said on Wednesday.
Instead investors focused on an oil price increase and a strong performance by European luxury goods makers.
Lenders fell out of favour after Bank of Ireland boosted borrowing charges for five- and 10-year fixed mortgages by 0.2 of a percentage point. Bank of Ireland shed 1.61 per cent to €5.505 while AIB fell 1.53 per cent to €4.
Cider maker C&C inched up 0.77 per cent to €3.28, a move dealers regarded as significant in light of the company’s exposure to the UK and the ongoing uncertainty surrounding Brexit.
Low-cost airline Ryanair, which is due to report third-quarter results on Monday, ended the day 0.96 per cent up at €11.025.
House builder Cairn Homes dropped 1.23 per cent to €1.29, having being off as much as 2 per cent earlier, despite a note from Cantor Fitzgerald Ireland analysts recommending the stock as a buy and giving it a €1.60 price target. Rival Glenveagh added 1.24 per cent to 82 cent.
Bookie PaddyPowerBetfair, another stock with UK exposure, advanced 2.14 per cent to €71.50.
Cardboard box maker Smurfit Kappa climbed 2.78 per cent to €26.66. The multinational said that it was borrowing €300 million through a bond sale, a figure it later increased to €400 million.
Insulation and building materials specialist Kingspan tumbled 2.69 per cent to €36.86. About 287,000 of its shares traded in Dublin, volume that dealers described as light. “But it was one of the larger moves today, nonetheless,” one added.
Irish-based explorer Tullow Oil rose 2.77 per cent to 200.5 pence sterling as crude prices climbed to $62.25 a-barrel.
In the same industry, Ophir Energy advanced 6.92 per cent to 54.10 after confirming that it had agreed to be taken over by Indonesia’s Medco in a deal valuing the company at £390 million.
Burberry added 3.04 per cent to 1,811.5p as the designer clothes maker benefitted from news that sales at French luxury conglomerate LVMH beat expectations.
Metro Bank sank 9.1 per cent to the bottom of the FTSE 250, hitting a new record low of 1,223p as it extended losses after last week’s profit warning.
Video advertising firm Taptica International surged 14.9 per cent to 194p after saying it was in advanced talks to take over rival RhythmOne in an all-share deal. RhythmOne however slumped 12.2 per cent to 164.5p .
Wizz Air shares took a U-turn to add 2.4 per cent to 3,122p as investors digested a third-quarter report in which the budget airline reported a jump in revenue and stuck to its profit guidance.
Luxury goods maker LVMH, whose brands include the Irish-linked Hennessy Cognac and Louis Vuitton luggage, surged after reporting fourth quarter figures showing demand for its high-end products remained strong in key markets such as China.
The French group’s shares climbed 6.87 per cent to €277.60 lifting other luxury players along with them. Gucci and Yves Saint Laurent owner Kering added 3.32 per cent to close at €432.30. Even Italy’s Salvatore Ferragamo which posted overall weak sales mitigated by resilience in China, was up as much as 2.8 per cent in early trade, before dropping back to close unchanged at €17.62.
Elsewhere, Swedish medical technology company Getinge soared 14.73 per cent to 99.10 Swedish kroner.
Aircraft manufacturer Boeing and iphone maker Apple led a rally on Wall Street.
Apple’s shares rose 5.4 per cent after reporting a sharp growth in services business and chief executive officer Tim Cook said trade tensions between the US and China were easing. The results assuaged worries after Apple cut current-quarter sales forecast earlier this month, blaming soft demand in China, whose economy has been dragged down by a trade war with the US.
Boeing jumped 6.7 per cent after the world’s largest planemaker forecast full-year profit and cash flow above analysts’ estimates.
Advanced Micro Devices jumped 15.6 per cent after the chipmaker reported record quarterly growth in data centre sales and projected 2019 revenue growth above Wall Street estimates.
Additional reporting: Reuters