Iseq:2,417.70 (+35.64) Settlement date:September 16th

STABILITY RETURNED to the European and Irish stock markets yesterday – for one day, at least – as French banks shook off concerns about their exposure to Greece and chatter about the potential Greek default failed to ignite a sell-off as it had done in Monday’s volatile session.

Equities rebounded across the board, with the FTSE up 0.9 per cent, the French Cac up 1.4 per cent and Germany’s Dax advancing 1.9 per cent. The Dublin market’s rally amounted to a 1.5 per cent gain, with little local newsflow to disrupt the macro picture.

The main stock-related news concerned IFG, which announced that its discussions with Bregal Capital have broken down.

Bregal, a UK-based private equity firm, entered into talks with IFG at the end of August with a view to making a bid for the Irish company, however, negotiations have now fallen down at the due diligence stage. In a statement, IFG said both parties had agreed to cease their discussions “in view of the current dislocation in global markets”.

IFG’s statement prompted a 26 per cent plunge in its share price, which closed at €1.20, or 43 cent lower.

Paper and packaging group Smurfit Kappa, after a recent period of selling pressure, had a better day, traders noted, clawing back some of its losses to close at €4.32, up 1.5 per cent.

Bank of Ireland also climbed, rising 4 per cent to 8 cent, while Ryanair finished up almost 2 per cent at €3.08.

Independent News & Media, on the other hand, fell 5.7 per cent to 28 cent.

Dragon Oil and Paddy Power made gains, while food stocks continued to attract some interest from investors keen on defensive names – although Greencore fell slightly – Kerry and Glanbia finished relatively flat.