THE Iseq index “drifted sideways” today until key economic data from the US soothed investor nerves somewhat and lifted the Dublin market, brokers reported.
Fears of a double-digit recession in the US had been stoked by disappointing macro-economic data released earlier this week. Today's non-farm payroll numbers were more or less in line with expectations, showing that jobs growth remained weak. However aagainst the backdrop of negative indicators, the data was sufficiently well-received to provide an initial boost to US equities, which rippled through to the Irish market.
The Iseq, which had retreated 2.3 per cent in June, added 1.7 per cent today to 2,845.16.
In the financial sector, media reports that at least seven companies have placed bids for AIB's Polish unit, Bank Zachodni WBK, drove the stock higher, as investors speculated that competing bidders will push up the sale price that the bank will achieve. AIB closed up almost 2 per cent to 81.5 cent.
Bank of Ireland was one of the biggest movers, gaining just under 4 per cent, or 2.4 cent, to close at 63.4 cent.
Irish Life & Permanent traded as high as €1.55, but sold off heavily into the close on decent volume. It slipped back to €1.43, but this still represented a daily gain of almost 2 per cent.
Cement giant CRH bounced 1.8 per cent, or 30 cent, to €16.72 on the back of the US economic data.
Ryanair was a strong performer on the day, and indeed over the week. The budget airline rose almost 3 per cent yesterday, or about 10 cent, to €3.68.
Former State carrier Aer Lingus was the biggest mover, adding 6.5 per cent, or 5 cent, to 82 cent.
Biotechnology company Elan rose almost 6 per cent to €3.83.
Overall, markets were relatively quiet in the lead-in to the Independence Day weekend in the US.
Across Europe, the UK's FTSE 100 rose 0.7 per cent and France's CAC 40 gained 0.3 per cent. Germany's DAX fell 0.4 per cent.
Additional reporting - Bloomberg