It was another positive day on the Irish market today, as financial stocks took the lead from their rallying UK peers. Overall, the Iseq out-performed other European markets, closing up by 85.95 points, or 3.2 per cent, at 2,765.32.
However, the big story on the day was the decline of Elan, which fell by about 40 per cent on opening, following the announcement that another patient taking its multiple sclerosis drug Tysabri, was diagnosed with a potentially life-threatening brain illness progressive multifocal leukoencephalopathy (PML). The stock later recovered some ground to finish the day down by 93 cent, or 15.9 per cent, at €4.92.
Amongst the financials, all the major names finished up on the day, although trading was light, as stocks benefited from central banks lowering interest rates and the continued decline in money market rates. Anglo Irish Bank, which has been the under-performer of late, was again the best on the day, gaining 29 cent, or 17.1 per cent, to advance to €1.99.
Allied Irish Bank was also strong on the day, advancing by 30 cent, or 9.0 per cent, to finish the day up at €3.65. Bank of Ireland added 5 cent, or 3.3 per cent, to grow to €1.63, while Irish Life & Permanent also closed up by 5 cent, or 2.3 per cent, at €2.15.
Paddy Power also remained strong today, as it continues to benefit from a solid performance by the sector in the UK. It finished the day up by €1.10, or 9.8 per cent, at €12.30.
CRH advanced by €1.32, or 8.6 per cent, to €16.70, in decent trading volumes, as the strengthening dollar earlier in the week continues to boost the stock, although other construction stocks Kingspan and Grafton were weak. Kingspan lost 13 cent, or 2.8 per cent, to fall back to €4.51, while Grafton fell back by 4 cent, or 1.6 per cent, to finish at €2.40.
In Europe, 13 out of 18 western European markets finished up on the day, and the Dow Jones Stoxx 600 was up 0.7 per cent at 215.22. Germany’s DAX closed up by 3 per cent, boosted by better than expected results from Metro AG and Man AG. In France, the CAC 40 fell by 1.3 per cent.
Banks performed strongly in the UK, with Barclays closing up by 8 per cent. Overall the FTSE 100 climbed for the third day in a row, finishing up 23.46 points, or by 0.6 per cent, to 4,266.
In the US, stocks rose on the back of better than expected economic statistics, as new data revealed that the economy contracted less than forecast in the third quarter. By 12.36 pm, the S&P 500 was up by 13.17 points, or 1.4 per cent to 943.26, while the Dow Jones gained 94.55, or 1.1 per cent, to advance to 9,085.51.
