European markets rose as miners and retailers posted strong performances, ending a losing streak sparked by fears over a possible Leave campaign victory in the UK’s Brexit vote.
DUBLIN
Traders said that the Irish market was “skittish” as investors weighed polls showing a strong possibility that the British electorate will opt to leave the EU.
They noted that stocks are being marked down rather than bought or sold. “There are a lot of marginal players on the sidelines waiting to hear how Brexit is going to go,” one said.
Bank of Ireland closed 2.73 per cent up at 22.6 cent having surged almost 6.8 per cent ahead at one point after Alphavalue analyst David Grinsztajn upgraded the stock.
Amongst the bigger stocks, insulation and building materials specialist Kingspan continued to make ground, adding 1.47 per cent to close at €24.10. Dealers noted that the manufacturer has consistently outperformed the market recently.
Building materials group and index heavyweight CRH added 1.27 per cent to end the day at €25.47.
Packaging group Smurfit Kappa rose by 1.81 per cent to €21.89. Another big player, low-cost airline Ryanair, ended the day 0.16 per cent ahead at €12.84 after paring back gains in earlier trade that saw it more than 1.4 per cent ahead at one point.
Real estate investment trust Green Reit climbed 2.44 per cent to €1.383 while its peer, Hibernia, was up 1.11 per cent at €1.19. Dealers noted that both had been weak in previous days.
LONDON
Irish-based builders’ merchant and DIY specialist Grafton inched up 0.38 per cent to 667.5 pence, bucking a trend that saw many construction-related stocks in London falling on Brexit fears.
Berkeley Group revealed sales had plunged by 20 per cent in the first five months of the year due to Brexit uncertainty. Berkeley shares dropped 1 per cent to 2,954 pence.
It sparked further share falls among other housebuilding stocks, which have been sent reeling in recent weeks amid mounting worries that Brexit could send property prices falling and impact sales. Taylor Wimpey also dropped 1.4 per cent to 170.7 pence.
Elsewhere, Poundland surged after South African furniture retailer Steinhoff International said it was considering a takeover bid for the discount retail chain. Steinhoff – which owns UK furniture firm Harveys – has until 5pm on July 13th to make a firm bid or walk away under City takeover rules. Shares in Poundland jumped 2 per cent to 200 pence.
Miners fell back into favour following a sharp sell-off in previous sessions. Glencore and Antofagasta topped the biggest risers, climbing more than 6 per cent.
EUROPE
Benchmark indices FTSEurofirst 300 and the Stoxx 600 rose following a five-day decline.
Zodiac Aerospace jumped 13 per cent.
Luxottica Group gained 2.1 per cent after Credit Suisse Group recommended buying the stock, citing excessive declines from its peak, attractive growth prospects and its competitiveness.
Aveva Group tumbled 12 per cent after talks for Schneider Electric SE to buy a majority stake in the British software maker ended without a deal. Schneider gained 2.5 per cent.
Spain’s Inditex rose more than 5 per cent after the world’s biggest clothing retailer posted a forecast-beating rise in profits as fast turnover allowed the owner of fashion chain Zara to react quickly to unseasonable weather.
US
Wall Street held gains ahead of the Federal Reserve statement. Bank of America rose 2.5 per cent after announcing plans to cut 8,000 jobs. Seven of the 10 major S&P sectors were higher. Apple gave the biggest boost to the S&P and the Nasdaq while Home Depot pushed up the Dow. – (Additional reporting: Bloomberg, Reuters)
