US jobs data buoys Dublin market

The Irish Stock Exchange was bolstered by positive unemployment data coming out of the United States today rising slightly to…

The Irish Stock Exchange was bolstered by positive unemployment data coming out of the United States today rising slightly to close at 2881.22.

Brokers said the Iseq and the global economy bounced this afternoon following news the US unemployment rate dropped for the first time in over a year and the Labor Department reporting a net loss of 247,000 jobs in July compared to the anticipated figure of about 325,000.

In the pattern of the day no-frills airline Ryanair suffered in the morning markets dropping 2.721 per cent only to recover in afternoon trading to close up 0.41 per cent at €3.21.

However, Aer Lingus failed to produce a similar recovery closing down 2.04 per cent to finish at €0.48.

Building materials group CRH, the largest component stock on the index, closed relatively flat at €17.40 despite the announcement from the US.

The Irish financial stocks also benefited from the positive news with the Bank of Ireland making the most gains, jumping 4.43 per cent to close at €2.099.

Allied Irish Banks also followed suit by falling 4.038 per cent in the morning and recovering later in the day to finish at €2.120. However, Irish Life and Permanent remained relatively flat throughout the day, rising just 0.83 per cent to close at €3.63.

Smurfit Kappa attracted strong trader interest in the build up to the packaging group's second quarter results due out next week, according to one broker. It closed down fractionally by 1.18 per cent to €4.20.

Meanwhile, C&C finished in positive territory rising 1.96 per cent to close at € 2.08 while DIY group and builders' merchants Grafton Group dropped off slightly falling 2.40 per cent to €3.25. One broker highlighted this could be attributed to some profit taking following a strong 10 days in the market for the stock.