European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in 20 years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut. Markets were closed for a public holiday in the US, which also reduced liquidity in European markets.
Dublin
The Iseq index fell more than 2.1 per cent, broadly tracking the performance of other distressed European markets.
One of the rare gainers was Tullow Oil, which maintains its main listing in London. Its Irish listing was ahead by 3.2 per cent to 51.6 cent per share, as oil prices surged.
The rise in fuel prices had a dampening effect on many Irish stocks, however, especially those in the travel industry. Ryanair was down 2.9 per cent to €12.05, while Irish Continental Group, the owner of Irish Ferries, fell 1.1 per cent to €4.25. Another stock reliant on the travel sector and also sensitive to consumer sentiment, Dalata hotel group, was down 3.4 per cent to €3.37.
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London
While London’s top index suffered losses during the day, it ended just about in the green on Monday, as gas and oil price rises pushed up stocks on the FTSE 100. It closed the day up 6.24 points, or 0.09 per cent, at 7,287.43
Housebuilder Vistry Group agreed a takeover of rival Countryside Properties in a deal worth about £1.25 billion. Vistry said that the merger will create a leader in the partnership housing sector and expand the delivery of affordable housing across England. Shares in Vistry ended the day 14p higher, at 755p.
Elsewhere in the housing sector, property franchise company Belvoir saw its half-year revenues jump by 12 per cent as it benefited from an active lettings market. The AIM-listed company reported a boost in buy-to-let purchases and higher rents that partially offset a slowdown in house sales caused by supply shortages. Belvoir’s shares were down by 5p, at 220p.
In pharmaceuticals, a warning about the impact of economic uncertainty on the sector and a return to pre-pandemic spending from Dechra Pharmaceuticals sent its shares tumbling. The veterinary pharmaceuticals business said trade had been bolstered during the pandemic by increased spending on pets, but that it is likely to fall back to normal levels. Shares in Dechra dropped by about 10 per cent during the day and were down 370p to 3,126p when markets closed.
Europe
European gas prices jumped as much as 30 per cent as the market opened, roiling equity markets. Germany’s DAX was down 2.3 per cent the day after the German government announced about €65 billion of support to help protect Germans from rising costs. The French Cac 40 was 1.26 per cent lower. Europe’s ST 600 was down 0.8 per cent, having recovered slightly after approaching a seven-week low earlier in the session.
The Stoxx plunge occurred after Russia’s Gazprom PJSC halted its key gas pipeline indefinitely. German steelmaker Thyssenkrupp, car-parts manufacturer Valeo, chemicals firm BASF SE, and cement maker Cie de Saint-Gobain were among the worst performers.
Shares of Germany’s biggest importer of Russian gas Uniper dropped 11 per cent, while its Finnish parent Fortum dipped 8.9 per cent and utility PNE slipped 4.1 per cent.
Energy stocks were among the rare gainers in Europe, up 2.2 per cent amid rising oil prices. European automakers slid 4.8 per cent after a Morgan Stanley downgrade to underweight.
Swiss bank UBS’s shares declined as much as 2.7 per cent in Zurich, days after its €1.4 billion acquisition of a US robo-adviser that formed a cornerstone of its push into digital banking collapsed. Late Friday, UBS and Wealthfront announced that the transaction they announced in January would not go ahead. Neither side specified a reason for the decision.
— Additional reporting: PA/Bloomberg/Reuters
