Investors confident on Greek vote

STOCKS SWUNG between gains and losses on European markets yesterday but finished little changed as investors took a favourable view of the Greek election results but fretted about Spanish banking debt, sending the latter’s borrowing costs higher.

Bank shares declined as Spanish 10-year government bond yields rose to 7.13 per cent, a euro-era record, after a report showed the nation’s bad loans increased in April. But equities were buoyed after Fitch Ratings said the results from the Greek elections removed the immediate risk of the company cutting the credit grades of euro area countries.

DUBLIN

THE ISEQ shifted only slightly on Friday’s close, with the market finishing down 0.1 per cent.

Investment group One51 sold its 12.3 per cent stake in ferry operator Irish Continental Group, which rose half a per cent to €14.92 and was the busiest stock of the day. One51, which had held the stake since 2007, is seeking to reduce its net debt as part of a two-year action plan presented to shareholders.

On the day of its extraordinary general meeting of shareholders, Bank of Ireland fell 2.1 per cent to 9 cent.

Cement-maker CRH, the largest stock on the index, closed down 0.4 per cent at €14.06, while food group Kerry rose 1.4 per cent to €35.25.

Untroubled by the decision of the Office of Fair Trading to refer its stake in Aer Lingus to the UK Competition Commission, Ryanair closed up 1.2 per cent at €3.91, while Aer Lingus shook off threats of industrial action to rise almost half a per cent to 94 cent.

Food group Glanbia climbed 5.4 per cent to €5.45, while Independent News Media advanced 4.9 per cent to 22 cent.

Drinks group CC, which holds its agm next week, rose 1 cent to €3.41. Data released by Nielsen on Friday showed that the company’s Magners brand underperformed the off-trade cider market in Britain during most of May.

LONDON

The FTSE 100 gained 0.2 per cent to 5,491.09 at the close in London after a see-sawing session. The broader FTSE All-Share Index also climbed 0.2 per cent.

Burberry, the UK’s biggest luxury-goods company, rose 2.9 per cent to 1,346 pence as Deutsche Bank recommended the luxury goods industry, saying the companies have “never had it so good”.

Wolseley advanced 2.6 per cent to 2,233 pence as Citigroup reiterated its buy recommendation for the shares, saying the stock could be worth 5,000 pence. It said US margins offer the most upside.

Quintain surged 15 per cent to 38 pence, its biggest gain since December 2010, after a Hong Kong investor agreed to provide £450 million to help the company develop Greenwich Peninsula, close to the City of London’s financial district.

Cable Wireless Worldwide jumped 7.8 per cent to 37.77 pence as its largest investor, Orbis Holdings, said it will accept the £1.04 billion takeover offer from Vodafone, paving the way for the bid to be completed.

Banks paced declining shares as Lloyds Banking Group declined 3.6 per cent to 30.2 pence, Royal Bank of Scotland slid 5 per cent to 235.3 pence, Standard Chartered lost 1.7 per cent to 1,368.5 pence and Barclays slipped 2.4 per cent to 196.05 pence.

EUROPE

The Stoxx Europe 600 Index added 0.1 per cent to 244.36 at the close after rallying as much as 1.1 per cent earlier in the day and sliding as much as 0.4 per cent.

National Bank of Greece, the country’s biggest bank, soared 11 per cent to €1.50 as the ASE Index surged 3.6 per cent. The move came as a gauge of banking shares posted the biggest decline on the Stoxx 600. Santander slid 4.6 per cent to €4.70. Bankia, the lender that was nationalised by the Spanish government last month, sank 9 per cent to 83.7 cent and BBVA retreated 4.2 per cent to €5.03.

Carrefour, the world’s second biggest retailer, slipped 3.2 per cent to €14.03 after chief executive Georges Plassat said it would take at least three years to turnaround the company.

NEW YORK

STOCKS IN New York fluctuated in early trading as Spain’s bond yields rose, with energy and financial shares falling the most among 10 groups in the Standard Poor’s 500 Index.

Facebook rallied 5.2 per cent in the one-month anniversary of its initial public offering, rising 5.2 per cent to $31.57. The shares have jumped 17 per cent in three days.

Groupon rallied 11 per cent to $11.12. The largest daily coupon website advanced after Morgan Stanley analysts upgraded the stock to overweight from equalweight, citing international sales opportunities.

Halliburton, the world’s largest provider of hydraulic-fracturing services, declined 2.3 per cent to $28.76. Alcoa, the biggest US aluminium producer, lost 1.9 per cent to $8.65. Morgan Stanley, owner of the world’s largest brokerage, slumped 2.3 per cent to $13.97.