European markets awoke to disquiet over the outcome of last night’s Slovakian “no” vote on the expansion of the main euro bailout fund, but took solace as the day progressed and it emerged that all was not as bad as it seemed.
An early boost came when the European Commission’s Olli Rehn told a Dublin conference the euro debt crisis could be resolved, while positive noises trickling from Bratislava as the hours passed also helped stocks to their feet.
By the close, European stocks climbed to a two-week high, having received additional help from José Manuel Barroso, who called for more capital for troubled banks, a speedier establishment of a permanent euro rescue fund and the payment of a sixth tranche of lending to Greece.
With the drivers mostly positive in the end, the Iseq finished the day nearly 2 per cent higher, with the banks particularly strong.
Things were less positive on the bond markets however, with yields benchmark 10-year Irish bonds closing above 8 per cent after climbing by 471 points. Eight-year yields also rose.
Volumes were fairly low among Irish stocks, with the usual exception of Bank of Ireland. The bank, which raised €1.1 billion in unguaranteed debt earlier in the week, added 0.03 cent to finish the session at 10 cent, having touched 10.5 cent around lunchtime.
AIB powered ahead on the junior market, at least in percentage terms, adding 1.3 cent to reach 5.9 cent.
Elsewhere, market heavyweight CRH provided a real lift as it rose by 44 cent to €13.08.
Merchanting firm Grafton was also solid, helped in part by a strong trading update from peer Travis Perkins. Shares climbed by 9.9 cent to €2.789.
Other positive moves on the day came from Fyffes, Kingspan, Independent News & Media and Ryanair.
On the losing side at the end was IFG, which shed 9 cent before settling at €1.15. Tullow dropped by 75 cent to €15.38 after events in the Ugandan parliament pointed to possible delays in the company’s sale of its interests in the country.
CPL was also weaker by the close, having declined by 10 cent to €2.80.
