Ryanair soars as full-year profit rises 66%

Markets were subdued yesterday, as Britain’s top share index hit a two-week closing low, and German and French indices finished the day in the red. Spanish regional election results put euro zone financials on the back foot, while falling oil and metals prices hit commodity stocks.

DUBLIN

Ryanair's stellar set of results may have sent the stock soaring, but its impact on the overall Irish market was limited, as the Iseq gained less than 0.1 per cent to climb by 4.1 points to 6,266.81. Volumes were thin.

Ryanair itself was buoyant. It was up by as much as 8 per cent at one point, but fell back later in the day to close up by 5 per cent at €11.40.

As one Dublin broker noted it produced an “excellent” set of numbers, with full year profits up by 66 per cent to €867 million. The airline is now targeting profit of near-on €1 billion for 2016, and with Ryanair management now on the road over the coming days, the stock may get a further lift.

Elsewhere, Aer Lingus was the other main story, with the announcement of a deal with IAG said to be imminent. It added 3 cents, or 1 per cent on the day, to finish up at €2.40.

Engineering group Mincon reported a 40 per cent jump in revenue in the first quarter of the year driven by acquisitions. However, brokers noted a risk to its full year numbers due to pricing pressures.

Index heavyweight CRH gave up 51 cent, or 2 per cent, to fall back to €25.11.

Trading in the banks was quiet. Bank of Ireland closed flat on the day at €0.36, while Permanent TSB fell by 5 cent or 1.2 per cent to €4.10.

LONDON

Britain’s top share index hit a two-week closing low, with banks slipping after Spanish regional election results put euro zone financials on the back foot, while falling oil and metals prices hit commodity stocks.

The FTSE 100 index slid 1.2 per cent to 6,948.99 points, the lowest close since May 12th, on the first session after a long weekend extended by Monday’s public holiday in the UK.

British banks with the most exposure to the euro zone, such as Royal Bank of Scotland, Barclays and Lloyds fell by 1.3 to 2.8 per cent. The UK banking index dropped 1.1 per cent, but Asia-exposed banks suffered less, with Standard Chartered down 0.8 per cent and HSBC losing 0.6 per cent.

“The news from Spain indicates that politically the country could be going in the same way as Greece. It does have implications for banks exposed to the euro zone.” David Battersby, investment manager at Redmayne-Bentley, said.

Oil and gas shares dropped sharply, with Royal Dutch Shell and BG Group both down 2 per cent after oil prices fell due to a stronger dollar and the possibility US shale oil producers could increase activity.

EUROPE

European stocks posted their longest losing streak in three weeks as US data and comments by Federal Reserve officials stoked concern of a rate increase. The Stoxx Europe 600 Index lost 0.7 per cent to 403.61 at the close of trading, reversing an advance of as much as 0.6 per cent. In Paris, the Cac-40 index closed down 33.6 at 5083.5. Greece’s ASE Index rose 1.1 per cent, halting its largest two-day drop in a month.

Investors are also watching for developments in Greek bailout talks, with a payment due at the end of next week.

NEW YORK

US stocks fell the most in three weeks, as better-than-forecast economic data and comments by Federal Reserve officials bolstered bets for an interest-rate increase this year. Energy and raw-material companies retreated as the dollar jumped, while Apple and Intelpaced a drop in technology shares.

Hewlett-Packard decreased 3.5 per cent. Time Warner Cable added 4.9 per cent after Charter Communications agreed to buy the cable provider for about $55 billion in cash and stock. Cablevision Systems climbed 2 per cent.

(Additional reporting Reuters/Bloomberg)