Bullish Iseq keeps in line with Europe as financials gain

DUBLIN REPORT: Iseq:2,845.43 (+27.54) Settlement date:December 14th

IRISH EQUITIES edged upwards yesterday with the Iseq index closing up the best part of 1 per cent. European shares rose for a fourth consecutive day to a two-year high, led by financial stocks.

The bullish mood among investors was aided by data showing that fewer people filed first-time claims for unemployment insurance payments last week in the US, while Japan’s economy grew by more than initially estimated in the third quarter.

The three-notch downgrade of Ireland’s sovereign debt by ratings agency Fitch had little impact on either equity or bond markets, with most investors expecting it.

In Dublin, Bank of Ireland soared 8.9 per cent to 47 cents, making it the highest climber on the Iseq yesterday. AIB was much quieter in terms of trading volumes, however, and closed flat at 50 cents. Irish Life & Permanent did manage to join in the Europe-wide rally in financial stocks, rising 4.9 per cent to €1.25.

Elsewhere, there was a bit of buyer interest in Greencore, the Irish food group set to merge with the British chilled-food manufacturer Northern Foods. Greencore closed down 1.37 per cent at €1.36.

Pharmaceutical company United Drug added one cent to close at €2 after it announced a deal to expand its UK speciality pharmacy homecare business through the acquisition of Careology. The stock was reasonably busy on the day following the announcement of the transaction.

Among the airlines, Aer Lingus advanced 5.8 per cent to €1.14, while Ryanair closed at €3.84, down one cent. Others to falter included insulation group Kingspan, which fell 1.33 per cent to €6.50, and Independent News Media, which closed down 2.9 per cent at 50 cents.

Iseq heavyweight CRH climbed 1.2 per cent to €15.10, which helped to keep the Irish market in the black.