Ryanair helps Dublin market buck declining trend

European stocks declined over the course of a nervy day’s trading, adding to their worst start to a year since 2010, as Lloyds Banking Group dragged a gauge of banks lower and a report showed US manufacturing grew at the slowest pace in eight months. Signs of a slowdown in China’s economy also contributed to some turbulence on emerging markets.

The Irish market nudged upwards, however, thanks to the biggest rally in Ryanair's stock in eight months.

DUBLIN
The story of the day was Ryanair, which climbed 6.6 per cent to a closing price of €6.73, as there was no repeat of the two profit warnings it issued in second half of last year.

The company’s net loss in the third quarter was in line with expectations at €35.2 million, prompting the stock to make a strong start to trading, while it also pushed higher in the afternoon after management held a conference call with analysts.

Ryanair’s ascent during Monday’s trading helped the index outperform European markets on the day. The Dublin market finished up 0.2 per cent overall, but beyond the airline, there were some jittery moves, one dealer reported.

Paper and packaging group Smurfit Kappa finished down 2.9 per cent at €16.90. Building materials group CRH declined 1.2 per cent to €18.83, while Kingspan also slid 1 per cent to €14.02.

Exploration group Kenmare, unloved by investors of late, fell 7.3 per cent to 20 cent. However, mining company Ormonde advanced 15 per cent to almost 8 cent and there was buying interest in fruit group Fyffes, which rose 2 per cent to 90 cent.

LONDON
UK stocks fell for a fourth day, with the benchmark FTSE 100 index slipping 0.7 per cent to a seven-week low. The broader FTSE All-Share Index also lost 0.7 per cent, as investors sold off stocks exposed to emerging markets.

Lloyds Banking Group lost 4 per cent to 79.99 pence after setting aside £1.8 billion more to compensate clients wrongly sold insurance. The latest provision brings the total it has set aside to compensate clients sold payment-protection insurance to £9.8 billion, more than any other British bank.

The mortgage lender also signalled it won’t pay a dividend for 2013.

Barclays fell 2.5 per cent to 265.70 pence, as a gauge of London-listed banks slid to its lowest level since June.

Reckitt rallied 2.2 per cent to 4,665 pence after analysts at Citigroup said a potential purchase of Merck's consumer-health unit would strengthen the company's portfolio.

Aberdeen Asset Management, which invests about two- thirds of its assets in global emerging markets and Asia-Pacific stocks, fell 3.6 per cent to 376.7 pence.

EUROPE
The Stoxx Europe 600 Index fell 1.3 per cent to 318.21 at the close of trading, dropping to its lowest level in six weeks, as the market correction continued.

National benchmark indexes fell in 14 of the 18 western-European markets, with Germany’s DAX sliding 1.3 per cent and France’s CAC 40 retreating 1.4 per cent.

US
Stocks fell in early New York trading. Telephone stocks led the declines after AT&T introduced new service plans, the latest in an escalating price war among wireless carriers. Its stock fell 3.5 per cent to $32.14, while Verizon fell 2.8 per cent to $46.67.

Ford fell 3.5 per cent to $14.43 and General Motors slipped 2.2 per cent to $35.30 after the largest US automakers reported declines in January sales that were greater than analysts had estimated.

Pfizer rose 2 per cent to $31.01 after saying a treatment for women with advanced breast cancer showed "positive" results in a trial.

The world’s largest drugmaker said a phase 2 trial of palbociclib plus letrozole achieved its primary endpoint in treating post-menopausal women with advanced breast cancer. – (Additional reporting: Bloomberg)