Shares rise on positive economic signs

EUROPEAN STOCKS advanced for the second consecutive day yesterday on the back of good earnings from heavyweights such as Unilever and Sanofi, and some positive macro-economic news. A number of third-quarter reports came in ahead of expectations yesterday.

At the same time the UK’s Office for National Statistics published figures showing that gross domestic product climbed 1 per cent from the second quarter, when it fell by 0.4 per cent.

A US Labor Department report, meanwhile, showed that jobless claims declined to 369,000 in the week ended October 20th, following a revised 392,000 a week earlier

DUBLIN

IRISH STOCKS gained ground until mid-afternoon when traders said a rumour that one of the ratings agencies was likely to downgrade the US slowed momentum.

Stockbroking firm Davy also revised down its predictions for the Republic’s economy, saying growth would reach 0.2 per cent this year, from 0.4 per cent, and would hit 0.9 per cent in 2013, down from 1.6 per cent.

Airline Ryanair ended the day 1.43 per cent ahead at €4.53, making up ground that was lost earlier in the week.

Packaging group, Smurfit Kappa made good progress in the morning, adding 2.4 per cent at one point. It fell back later on before recovering its poise to close 2.06 per cent ahead at €8.42.

Food group Glanbia had a busy day with more than 320,000 shares changing hands. It closed 2.47 per cent ahead at €7.55.

Explorer Petroneft announced a $17 million placement late on in the day. Its shares tumbled by more than 16 per cent to 7 cent, a cent over the proposed issue price.

DIY specialist and builders’ merchant Grafton shed 1.47 per cent to close at €3.35. Dealers said that investors tended to buy the stock at around €3.25 and sell when it tops the €3.30 mark.

LONDON

THE BENCHMARK FTSE 100 finished the day flat despite official figures indicating that Britain emerged from recession in the third quarter.

Debenhams jumped 9.2 per cent to 119 pence, the highest price in five years, after saying it would continue to buy back shares next year. The British department store chain said it plans to have a total of 150 franchise stores within the next five years.

WPP fell 2.3 per cent to 789.5 pence after cutting its full-year sales growth target for the second time in two months. The world’s largest advertising company said revenue, excluding currency fluctuations and acquisitions, would grow 2.5 per cent to 3 per cent, compared with a previous forecast of about 3.5 per cent.

Fresnillo rose 2.2 per cent to 1,930 pence as it approved a feasibility study for the development of its $500 million San Julian silver and gold project.

Evraz, the Russian steelmaker part-owned by billionaire Roman Abramovich, had the biggest decline in the FTSE 100, falling 6 per cent to 235.4 pence.

EUROPE

THE STOXX Europe 600 Index, which tracks leading stocks in 18 western European markets, increased 0.3 per cent to 270.23 at the close yesterday.

Unilever gained 2.6 per cent to €28.45, its largest rally since July, after the world’s second biggest consumer goods company said third-quarter revenue grew 5.9 per cent. That beat the 5.3 per cent increase estimated by analysts in a Bloomberg survey.

Sanofi climbed 1.4 per cent to €67.04 after the company reported a 7.4 per cent decline in business net income, which excludes some costs, to €2.22 billion. The drugmaker also said earnings would drop this year less than it had forecast.

Daimler slipped 2.7 per cent to €36.79 after the German carmaker lowered its 2012 forecast and said it would no longer reach its 2013 operating-margin targets because of tougher market conditions.

France Telecom slid 5.2 per cent to €8.83 after saying it would pay a dividend of 80 cents in both 2012 and 2013. The former telecommunications monopoly made a payout of €1.40 in 2011.

Logitech International plunged 16 per cent to 6.92 francs after the world’s largest maker of computer mice forecast lower sales and operating profit in the second half of the current fiscal year than a year earlier.

US

BETTER THAN expected corporate earnings helped US stocks to advance. Symantec climbed 6.7 per cent to $18.54. The security-software maker forecast sales that topped projections.

ConocoPhillips gained 1.8 per cent to $56.96. The Houston- based oil-and-gas producer said profit excluding one-time costs and gains was $1.44 a share, 25 cents more than the average of 18 analysts’ estimates.

McKesson increased 4.2 per cent to $93.28. The drug distributor agreed to purchase PSS World Medical for about $2.1 billion. PSS surged 32 per cent to $28.60. – (Additional reporting: Bloomberg)