Iseq rises on back of US home sales figures

Dublin’s ISEQ took its lead from European markets which rose to their highest closing level since early November following better-than-expected existing homes sales data from the US and positive news from the Purchasing Managers Index (PMI) which suggested a possible return to growth in the eurozone.

The ISEQ finished 1.66 per cent higher at 2,994. Trading activity continued to be muted, however, as investors held back ahead of next week’s busy results week.

ISEQ heavy-weight, CRH, which will post interim results next Tuesday clocked up a 1.86 per cent gain, closing 35 cent higher at €18.92. The company, which generates almost 50% of its revenue in the US, was given a boost by the positive US existing homes sales data for July.

Banking stocks were mixed. AIB and Bank of Ireland reversed earlier gains to close marginally lower. Bank of Ireland lost once cent to close at €2.11 while AIB ended the session fractionally lower at just under €2.12. Irish Life and Permanent was the star performer among the financials, however, reversing the yesterday’s losses to end the week 8 cent higher at €3.68, a gain of over 2 per cent. Its rally comes ahead of its interim trading statement next Wednesday.

Airline stocks put in a solid performance, despite the fact that the price of oil reached a 2009 high today, with US crude soaring past the $74 a barrel mark at one point. Ryanair gained 7 cent to close at €3.21, as investors mulled over after a week which saw the airline announce an expansion of its Edinburgh, Dusseldorf and Madrid routes. Aer Lingus also ended the day in positive territory, rising 2 per cent to 52 cent.

Greencore continued to regain ground in the wake of uncertainty surrounding property developer Liam Carroll’s 29.5 per cent shareholding in the company earlier in the week. It soared by 7.5 per cent to close at €1.43.

News that Australian publishing group APN, in which Independent News & Media holds a 32 per cent stake, reported a larger than expected 50 per cent fall in pretax profits had no impact on the Irish company’s share price which was unchanged at 25.5.

European markets rose to their highest closing level since early November following better-than-expected existing homes sales data from the US and positive news from the eurozone’s Purchasing Managers Index (PMI) London’s FTSE finished 2 per cent higher at 4,851, its highest close since October 2008, led by commodity and financial stocks. In Paris, the CAC ended the week 3.2 per cent higher while the DAX advanced 2.9 per cent.