After the sluggish movement of previous days, the ISEQ index jumped 2.5 per cent, to end the day in positive territory, in line with the movement of Europe’s main markets which all ended the day higher as concerns on the economic outlook began to ease.
Trading activity in the Dublin market continued to be subdued, however, as markets held back ahead of a busy results week next week, which will see interim trading statements from index heavyweights such as CRH, Irish Life & Permanent and Kingspan.
The index was bolstered by gains in building materials group CRH, the largest constituent in the Index, which advanced by 67 to €18.57 ahead of its interim results next week. The gains mirrored the performance of construction stocks across Europe which rose after results from Holcim, the world’s second-largest cement maker, pleased investors.
The performance of banking stocks was mixed. AIB ended the day over 6.5 per cent higher at €2.12. Bank of Ireland also closed at €2.12, a gain of almost 3 per cent, or 6 cent. However, Irish Life & Permanent finished the session lower, losing 5 cent to end at €3.60 ahead of its interim trading statement due next Wednesday which analysts predict will show the effects of loan losses and lower new business sales.
Shares in food group Greencore continued to stabilise in the wake of speculation earlier in the week about the status of troubled property developer, Liam Carroll’s 29.5 per cent shareholding in the company. It ended the day .76 per cent higher to close at €1.33.
C&C was another main mover today. It closed up almost 3 percent, a gain of 6 cent, to end the day at €2.10. Despite the fact that excise data from the Irish Revenue Commissioners showed a decline in cider excise receipts in June, investors are positive ahead of C&C’s AGM on August 28th, at which the company is expected to update the market.
European shares closed higher, with construction stocks advancing on the back of Holcim results and banks and commodity stocks performing well. London’s FTSE ended the day 1.4 per cent higher to close at 4,757 with oil and mining stocks leading the gains, and banking stock also rallying. Franfurt’s DAX index ended at 5,311 points, a gain of just over 1.5 percent, while the Paris CAC closed up 1.59 per cent at 3,505, a gain of 55.
