Optimism about US-China trade boosts shares
Ryanair shares rise 1.9% on news airline could cut up to 900 jobs in coming months
Ryanair stock traded up as the news broke around midday on Wednesday. Photograph: François Lenoir/File Photo/Reuters
Positive news from several companies and optimism about US-China trade talks boosted shares on Wednesday.
Glanbia’s shares tumbled after the food group warned that earnings would undershoot expectations by about 10 per cent following a disappointing six months for its protein and nutritional supplements business.
The Kilkenny-based group’s stock lost 15.59 per cent to close at €11.80 in Dublin on Wednesday after the profit warning.
Ryanair shares rose 1.9 per cent to €9.658. It emerged that the airline could cut up to 900 jobs in coming months on the back of falling air fares, Brexit fears and stalled aircraft deliveries.
Traders said that the stock traded up as the news broke around midday on Wednesday.
Paddy Power and Betfair parent Flutter Entertainment shed 1.7 per cent to €71.58 as its British rivals William Hill and GVC also suffered.
Property investor Green Real Estate Investment Trust shed 1.43 per cent to €1.792 after announcing it had begun talks on a possible sale to Henderson Park.
Shares in Hibernia Reit, which held its annual general meeting on Wednesday, fell 1.82 per cent to €1.51.
Bank of Ireland dipped 0.7 per cent to €4. Traders noted that the shares sold at €4.50 on July 25th, while they actually slipped below the €4 mark for a period on Wednesday.
International packaging group Smurfit Kappa, which reported that profits for the six months ended June 30th rose 9 per cent to €456, gained half a per cent to €28.52.
House builder Travis Perkins rose 3.21 per cent to 1,366 pence sterling on news that first-half operating profits hit £64 million sterling.
Rival Taylor Wimpey saws its shares move the other way after saying that profits fell 9.4 per cent to £300 million. Its stock closed down 8 per cent at 161.8p.
Irish-based builders’supplier Grafton, whose shares are listed in London, dipped 0.95 per cent to 727p.
Shares in GVC fell by 16.2p to 591.6p after Ladbrokes Coral, the bookie it bought in 2018, was fined £5.9 million for “systemic failings” in its anti money laundering safeguards.
Air France KLM shares rose 8.45 per cent to €9.42 after analysts predicted that the airline’s stock would outperform market expectations.
Cement maker and CRH rival Holcim Lafarge dipped 0.3 per cent to 48.95 Swiss francs after reporting that first-half operating profit rose 45 per cent to 1.5 billion Swiss francs.
The euro-zone banking index gained as France’s BNP Paribas rose 1.6 per cent on a strong performance in corporate and investment banking, and Credit Suisse 2.4 per cent after reporting its highest quarterly earnings in four years.
Helping Italian shares outperform, Fiat Chrysler’s shares rose 2.9 per cent after the Italian automaker stuck to its full-year profit guidance after a strong performance from its Ram pickup truck in North America helped it defy an industry slowdown. Ferrari’s shares rose 1 per cent.
US stocks trod water on Wednesday, as investors awaited the cut in interest rates by the Federal Reserve.
Apple gained 3.78 per cent after the iPhone maker beat quarterly profit and revenue expectations, and forecast strong sales for the current quarter, easing concerns around the impact of the US-China trade war.
Electronic Arts jumped 4.8 per cent after the video game publisher posted a quarterly revenue beat, riding on the continued success of its game Apex Legends.
Beer maker Molson Coors slid 6.9 per cent after its quarterly net sales and profit missed estimates on weak demand. The company also said chief executive Mark Hunter was retiring.
Additional reporting – Reuters