Iseq tracks Europe with 1.3% rise in light volumes

Iseq: 2,697.11 (+35.24) Settlement date: November 16th MARKETS ROSE across Europe yesterday, but the climbs were the result …

Iseq: 2,697.11 (+35.24) Settlement date: November 16thMARKETS ROSE across Europe yesterday, but the climbs were the result of the absence of doomsday-reacting sellers rather than the presence of enthusiastic buyers.

Volumes were “very, very light” on the major stock markets, one dealer noted, with the lack of fresh “bad” news in Europe meaning “the path of least resistance was up”, not down, for equities.

On the FTSE in London, the German Dax and the French Cac indices, volumes were 33-35 per cent lighter than the 20-day average. In Frankfurt, stocks closed up 3.2 per cent, while Paris climbed 2.8 per cent. The London market saw a more modest advance, finishing up 1.9 per cent, while the Iseq rose 1.3 per cent.

There was little local news flow, with just an interim management statement from Bank of Ireland to enliven affairs.

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The statement was broadly positive and included a declaration that it has made “substantial progress” towards achieving its deleveraging targets. The bank’s comments on shrinking the size of its loan book and growing its deposit base reassured investors and its share price finished up 1.1 per cent at 9 cent.

Building materials group CRH, which is moving its main market listing to the FTSE in December, increased 3.8 per cent to €13.55.

Ryanair, set to become the largest stock to have its primary listing on the Iseq, advanced ½ per cent to €3.67, although Aer Lingus fared less well, declining 4.2 per cent to 68 cent. The Dublin Airport Authority told airlines that charges at the airport would remain flat next year.

Paper and packaging group Smurfit Kappa fell 2.8 per cent to €4.80, as investors locked in profits on their holdings in the stock two days after it published quarterly results. Stockbrokers NCB put out a note on the stock that reduced its earnings forecasts for 2012 and 2013.

Laura Slattery

Laura Slattery

Laura Slattery is an Irish Times journalist writing about media, advertising and other business topics