European shares rise on Dubai bailout

Shares across Europe rose today, with the Iseq showing moderate growth during the session.

By 1.27pm, the Iseq was up 22.07 points to 2,948.33

Shares in DCC were trading up, rising 0.6 per cent to €19.37. the company earlier announced it had bought British fuel company Brogan Holdings for €47.2 million. The move will help boost the firm's share of the UK oil distribution market and expand its share in the fuel card sector.

Meanwhile, bank stocks across Europe were lifted this morning on the news that Abu Dhabi had thrown Dubai a $10 billion lifeline.

Among the Irish financials, Bank of Ireland was the strongest performer, rising 1.2 per cent to €`1.44.

However, the same gains were not seen elsewhere. AIB was down 1.9 per cent to €1.28. There was a more modest decline in Irish Life and Permanent, which fell 0.5 per cent to €3.23. Brokers noted media reports over the weekend, which seemed to suggest that ILP has requested Financial Regulator review its capital requirements.

FBD Holdings shed 5.8 per cent on the news that the insurance claims arising from the recent floods could add up to €9 million to its net incurred claims costs. Earnings per share would be reduced by 21 to 24 cent, the company said in a statement this morning.

Among the airlines, Aer Lingus rose 2.8 per cent to more then 58 cent a share, while rival Ryanair saw more modest growth, adding 0.3 per cent to €3.10. Airlines were benefiting from falling oil prices, which saw a decline to under $70 today. The price of jet fuel has also decreased as a result, and traders believe any further price fall will see additional fuel hedging.

Heavyweight stock CRH rose 2 per cent to €18.75 today. Traders were buoyed by suggestions that additional funding will be provided to US highways in 2010 and 2011, a positive indicator for CRH, which is the largest provider of raw materials into the US highway market.

Dragon Oil shares were down 2 per cent to €4.20, but volumes were light. Shareholders last week rejected a bid by Enoc to buy the firm, a move that some Dublin traders backed. However, brokers did not rule out further corporate interest for Dragon Oil.