Global equity markets rallied yesterday as strong private-sector US job growth provided a further spur after the Republican Party seized control of the US Senate in mid-term elections. The Irish market gained 1.6 per cent.
DUBLIN With a resolution now in sight to long-running pension woes at Aer Lingus, investors were also cheered by a 19 per cent rise in the third-quarter operating profit. Shares in the airline closed 7.76 per cent higher at €1.638.
Strong-buying interest in Aer Lingus stock came as its shareholder Ryanair, which lifted its profit forecast on Monday, saw further gains. Ryanair shares rose 2.15 per cent to close at €8.57.
There was news too from Smurfit Kappa, which declared it was on the acquisition trail as it released quarterly results. The packaging group's stock rose 2.68 per cent to close at €16.84.
Separately, the ever-increasing likelihood C&C will not be able to execute its mooted takeover of the Spirit pub group in Britain is a matter of relief for some investors. Shares in the cider company finished 1 per cent stronger at €3.712 .
Insurer FBD lost 0.79 per cent of its share value to finish at €13.74 but traders said volumes were thin.
LONDON Britain's top share index advanced as reassuring corporate reports helped counteract modest weakness in commodity-related stocks.
Retailer Marks & Spencer led the market higher, surging 9.1 percent after raising its margin outlook, while aircraft parts supplier Meggitt gained on its plan to start a share buyback programme.
Marks & Spencer was the biggest gainer in the blue-chip FTSE 100 index, after Britain’s top clothing retailer by revenue posted a rise in underlying first-half profit for the first time in four years and raised its guidance for non-food gross margin for 2014-15.
The update came a day after strong sales growth at discount fashion group Primark helped boost the earnings of parent AB Foods, although disappointing updates from supermarket Tesco and fashion chain Next had fuelled concern about the retail sector.
“Earnings season has not been too bad, but retailers have been mixed. In light of what we heard from Tesco, there had been concern, but Marks and Spencers has been all right and that’s come as a surprise,” Mark Priest, sales trader at ETX Capital, said.
EUROPE European stocks rebounded, helped by positive company results.
German chemicals distributor Brenntag rose 4.4 per cent, boosted by forecast-beating earnings. German reinsurer Hannover Re advanced 2.2 per cent after its net profit beat forecasts, while Italian asset manager Azimut progressed 5.1 per cent after posting net inflows in October.
Bucking the trend was Finnish stainless steel maker Outokumpu which slumped 9.2 per cent after reporting a bigger-than-expected quarterly loss. German industrial services and building group Bilfinger also dived 12.7 per cent lower after issuing its fourth profit warning since the end of June.
US The Dow advanced to a record high in early trading on the sweeping Republican victory.
The energy sector was the second biggest gainer of the S&P 500’s 10 sectors, rising 1.7 per cent, as the Republican majority could lead to approval of oil and natural gas pipelines, and reforms for crude and natural gas export laws.
“In the end the results were pretty decisive,” said John Carey, a portfolio manager at Pioneer Investment Management in Boston. “That’s good news for the industries that had been subject to regulatory issues.”
MSCI’s all-country world stock index rose 0.3 per cent, while both the Dow and S&P 500 traded above closing highs set last week. – Additional reporting by Reuters/Bloomberg
