Irish financial stocks benefited from today’s banking rally which was driven by Portugal’s healthy bond sale.
Bank of Ireland led the winners on the Irish stock market, rising 7.5 per cent, or 2.5 cent, to 36 cent. Irish Life & Permanent added more than 2 per cent, or two cent, to finish at 88 cent.
One Dublin broker explained that the success of the Portuguese bond auction today was perceived as being positive for banks, as were EU Monetary Affairs Commissioner Ollie Rehn’s comments about reinforcing the lending capacity of the European Financial Stability Facility. “The whole lot is pretty positive,” he said. “Europe is answering the market’s demand for a larger backstop for the capital needs of the banks.” However despite today’s uplift in banking stocks, there is no “sense of finality” yet, and volatility is expected to continue, he said.
Building materials giant CRH finished up 1 per cent, or 14.5 per cent, at just under €14.65, but nonetheless it lagged peers such as Saint Gobain which were lifted by positive broker comments.
Although airlines in general were flat to slightly positive today, Ryanair was a touch weaker, closing 1.6 cent off at €3.93.
Smurfit Kappa, which has been strong in recent sessions, traded up again. It touched a daily high of €7.95 at one point, and closed just below €7.92, up more than 2 per cent. One broker said recent comments regarding further consolidation in the paper and packaging sector may have contributed to Smurfit’s positive performance.
Elsewhere, drinks manufacturer C&C traded positively in advance of its interim management statement which is due out on Friday. The stock rose almost 1 per cent, or 3.4 cent, to €3.55. There was also good interest in Irish Continental Group which was more than 2 per cent ahead at €16.30.
Overall the Iseq rose almost 1 per cent to 2,934.23. Elsewhere in Europe, the UK’s FTSE 100, Germany's DAX and France's CAC 40 rose 0.6 to 2.2 per cent.
Portugal's PSI 20 was up 2.6 per cent, while Italy's FTSE MIB climbed 3.8 per cent.
Additional reporting: Reuters