Iseq bucks positive trend in Europe

STOCKS ADVANCED yesterday on news that US jobless claims fell 30,000 to 339,000, their lowest level in four years.

The positive sounding news from the world’s biggest economy boosted most European markets, but the benchmark Stoxx 600, which tracks leading shares across the continent, was still down 1.2 per cent on the week so far.

Ratings agency Standard Poors decision to cut Spain’s credit rating to one level above junk hit the country’s banks.

However, markets were up in markets such as France, Germany and London.

Strong performances from luxury goods makers Louis Vuitton and Burberry helped to boost the CAC and FTSE.

DUBLIN

THE DUBLIN market ran slightly counter to the overall pattern in Europe, losing a marginal amount of ground yesterday.

Listed bookmaker Paddy Power provided the main piece of corporate news yesterday. The group announced at the opening of its new headquarters in Dublin that it intends creating 600 jobs to underpin continued expansion.

The stock dipped, closing down 0.44 per cent at €57.15.

Index heavyweight, building materials group CRH closed 1.23 per cent ahead at €14.05. More than 1.15 million shares in the group changed hands in Dublin yesterday. The positive news from the US, where it generates half its profits, aided the stock’s performance.

Elsewhere, packaging giant Smurfit Kappa also enjoyed a good day, closing 2.23 per cent ahead at €8.25. Over five million of its shares traded in Dublin yesterday.

Exploration group Providence Resources, which rose 25 per cent on Wednesday on the back of more news from its Barryroe oil and gas prospect, fell 3.66 per cent to €8.43.

LONDON

BURBERRY SURGED 13 per cent to 1,136 pence, the biggest gain since at least July 2002, after the UK’s largest luxury-goods maker said sales at stores open at least a year rose 1 per cent in the second-quarter, beating the average analyst estimate calling for a 1 per cent drop.

That’s an improvement on the unchanged performance Burberry reported on September 11th for the first 10 weeks of the period. Burberry raised its outlook for retail and wholesale operating margins in the first half to be “at least in line” with last year, rather than lower as previously forecast.

BAE Systems rose 2.4 per cent to 328.5 pence after chief executive Ian King said the company is “strong and financially robust”. Adjusted earnings per share will show “modest growth” this year if price negotiations with Saudi Arabia over a fighter-jet order are concluded on time, the London-based company said today.

BAE and European Aeronautic, Defence Space Co said yesterday they terminated their planned merger because of government resistance.

Bumi soared 39 per cent to 259 pence, the most since its London listing in July 2010, after PT Bakrie Brothers Tbk proposed an asset swap. The Bakrie Group offered to exchange a 23.8 per cent stake in Bumi for 10.3 per cent of PT Bumi Resources, Bumi said in a statement.

EUROPE

A GAUGE of personal and household-goods companies was the second-biggest gainer among 19 industry groups in the Stoxx 600.

LVMH Moet Hennessy Louis Vuitton climbed 3.8 per cent to €122.95. Cie Financiere Richemont added 4.5 per cent to 59.90 Swiss francs and Christian Dior advanced 3.6 per cent to €108.30.

Carrefour advanced 3.7 per cent to €16.58 after the French retailer said third-quarter revenue rose 2.1 per cent to €22.6 billion, topping the average analyst estimate of €22.4 billion.

Banco Popular slid 4.9 per cent to €1.30. Bankia dropped 0.3 per cent to €1.02, paring earlier losses of as much as 3.8 per cent.

Siemens retreated 1.3 per cent to €77.05 after Deutsche Bank cut its recommendation on the shares to hold from buy.

Coca-Cola Hellenic Bottling dropped 4.9 per cent to €15.66 as Greece’s largest company by market value plans to transfer its main stock listing from Athens to London.

Coca-Cola HBC, a new company established in Switzerland by one of the bottler’s main shareholders, will make a share-exchange offer for Coca-Cola Hellenic and seek a primary listing in the UK, said a regulatory filing.

US

Bank of America, the second-largest US bank by assets gained 1.3 per cent to $9.33. JPMorgan Chase, the largest bank, rose 0.7 per cent to $42.07.

Sprint Nextel jumped 12 per cent, the biggest gain in the SP 500, to $5.64. Softbank, Japan’s third-largest mobile phone company, is in discussions regarding a potential substantial investment that could involve a change in control of Sprint.

Safeway tumbled 3.4 per cent to $15.74 after earlier falling as much as 7.9 per cent. – (Additional reporting: Bloomberg)