Markets hit two-month highs after good news from corporates
Market report: Kingspan leads the way in Dublin with a 3.7% gain
Kingspan chief executive Gene Murtagh: The insulation and building materials specialist led the way with a gain that saw it close at €38. Dealers said the stock had been weak on Monday but had strong recovery through Tuesday
Markets hit two-month highs on Tuesday aided by good news from several companies including oil giant BP which reported that profits doubled in 2018.
Leading Irish stocks climbed on the back of the global bounce, lifting the benchmark Iseq Index of Irish shares by 1.8 per cent.
Insulation and building materials specialist Kingspan led the way with a 3.7 per cent gain that saw it close at €38. Dealers said the stock had been weak on Monday but that recovery had been strong through Tuesday.
Cardboard box maker Smurfit Kappa advanced 4.54 per cent to €25.78 after hitting a high of €25.80 around 3.30pm.
Building materials giant and index heavyweight, CRH, advanced 1.47 per cent to €26.18.
Dairy and food processor Glanbia, owner of the Avonmore milk brand, added 2.62 per cent to end the day at €16.85. The stock traded at highs of €16.90 earlier in the day.
“There’s been a broad rally and a couple of the Irish larger caps have bounced on the back of that,” one dealer said.
Ryanair, which said earlier in the week that it lost €20 million in the three months ended December 31st and announced that it planned to remodel business as a group, advanced 2.37 per cent to €11.45.
News that Germania became the latest airline to file for bankruptcy aided the Irish giant as investors believed the German carrier’s exit would help cut capacity and ease competition in Europe. HSBC ranked Ryanair a buy in a research note.
C&C, producer of Bulmer’s and Magner’s cider, lost some of its fizz after analysts at Berenberg recommended that investors sell the stock. It closed 2.6 per cent down at €3.19.
Irish convenience foods and sandwich maker Greencore surged more than 5 per cent after analysts at broker Jefferies resumed coverage of the company with a note setting a 245 pence sterling target price for the stock. The group’s shares closed 5.03 per cent up at 200.6p in London on Tuesday.
Dublin-based fuel, technology products and healthcare distributor DCC added 2.66 per cent to close at 6,750p after publishing what traders called a “solid” update early in the day. The statement eased fears that the relatively mild winter would hit prices.
On-line grocer Ocado gained 4.17 per cent to 1,034p after issuing results showing revenues last year rose 12 per cent to £1.47 billion but losses widened to £44.4 million from £8.3 million in 2017. Management hinted at on-going talks with potential partners.
Oil giant BP climbed 5.17 per cent to 547p after reporting that profits more than doubled to $12.7 billion last year from $6.16 billion.
Mid-cap drugmaker Indivior slumped 9 per cent after losing the latest round of a US court battle to delay the launch of generic competitors to its blockbuster drug Suboxone.
Retail stocks were in favour as a survey showing British consumers picked up the pace of their shopping in January offered some respite to a sector that suffered its worst Christmas in a decade. Marks & Spencer rose 2 per cent.
Germany’s DAX rose 1.66 per cent and France’s CAC grew 1.54 per cent. The Stoxx Europe 600 Index rose 1.3 per cent, reaching the highest in 12 weeks on its sixth consecutive advance.
Technology and consumer discretionary stocks pushed Wall Street higher on Tuesday, as upbeat results from Esté Lauder and Ralph Lauren fueled earnings optimism.
Cosmetics maker Estée Lauder led gains jumping 13.1 per cent, followed by luxury fashion group Ralph Lauren up 10.4 per cent, after both their quarterly reports exceeded expectations.
Google owner Alphabet posted better-than-expected quarterly revenue and profit. However, worries about sharply higher spending, sent its shares down 1.4 per cent.
Iphone maker Apple’s stock rose 2 per cent while online store Amazon gained 1.6 per cent, helping to boost technology shares’ overall performance.
– Additional reporting: Reuters