Iseq:2,942.05 (+30) Settlement date:July 4th
GREECE’S APPROVAL of a new austerity plan provided an afternoon boost to equity markets across Europe, with the FTSE 100 closing up 1.5 per cent and the Iseq rising 1 per cent in its wake.
The Dublin market was propelled by a 3.8 per cent increase in the share price of building materials group CRH, the largest stock on the index, which closed at €14.83. The gain reflects sentiment towards construction stocks exposed to the US housing market, which is showing some evidence of price stabilisation, although new house building remains at low levels.
After a buoyant start to the week, cider manufacturer C&C fell 2.6 per cent to €3.53 as it held its agm and updated the market on its recent trading patterns.
Although the group reaffirmed its guidance on forecasted earnings for its full fiscal year and indicated strong growth in Magners, it confirmed that poor weather in June contributed to relatively weak trading during the month.
Elsewhere, Paddy Power climbed 1 per cent to €36.87, on a day when its peer in the bookmaking sector, Betfair, published a set of full-year results described by analysts as solid – core Betfair revenues increased almost 8 per cent in the year to the end of April.
Food group Greencore was among the days heaviest fallers, down 3.4 per cent to €1, while Smurfit Kappa closed up 5 cents at €8.19.
The Greek parliament’s actions, which pave the way for a second bailout, prompted a jump in oil prices as well as an equities rally, which meant airline stocks did not join in the party. Having climbed during the day, Ryanair closed at €3.56, flat on the previous day’s closing price.
There was respite for peripheral euro zone countries on the bond markets, with the yield on 10-year Irish debt down 13 basis points on Tuesday at 11.71 per cent.
