Stocks fall as Wall Street reopens

WALL STREET reopened yesterday following two days of closure due to “Superstorm” Sandy. Despite the fact that traders experienced limited internet and mobile-phone connections, they were still able to trade from the exchange, with some market observers noting that trading had been more active than had been anticipated.

European stock markets declined erasing earlier gains, which had been mostly driven by a strong performance from the airline sector, as other corporate results disappointed.

DUBLIN

THE ISEQ index was little changed yesterday on the final day of trading for October.

Kerry Group was one of the most actively traded stocks, following the publication of the company’s interim management statement at lunchtime.

The food group reported a 10.9 per cent rise in sales on a reported basis to €4.4 billion in the first nine months of the year, despite a tough consumer environment in Europe, driven by a strong performance in its ingredients and flavours division in the US and the Asia-Pacific region. The stock finished off 2.6 per cent, though traders pointed out that this reflected profit-taking after strong buyer interest for the stock in recent weeks.

C&C closed off 1.3 per cent at €3.69, following results from rival drinks company ABinbev which reported an 80 per cent increase in the sale of its cider brand, Stella Cidre during the summer.

Following a strong run of late, Glanbia shed a hefty 3.6 per cent yesterday to finish at €7.32.

Despite the strong performance of the airline sector across Europe yesterday on the back of better than expected third-quarter results from Air France-KLM and Lufthansa, both Ryanair and Aer Lingus finished the session lower.

Ryanair shed a half a per cent to close at €4.47, while Aer Lingus slipped 2 per cent to €1.03, as concerns about the prospective strike later this month weighed on sentiment.

Elsewhere, Smurfit Kappa was a strong performer ahead of its interim management statement next week, as peer company Mondi reported quarter two results in line with expectations.

LONDON

UK STOCKS declined, trimming the benchmark FTSE 100 Index’s monthly gain, as BG Group slumped the most in at least 24 years.

The FTSE 100 Index slipped 67.20 points, or 1.2 per cent, to 5,782.7.

BG Group plunged 14 per cent after the energy company lowered its production target for 2012.

Barclays declined 4.7 per cent after disclosing two additional investigations by US regulators.

IAG, the owner of British Airways, advanced 1.7 per cent after Air France-KLM Group and Deutsche Lufthansa AG posted earnings that beat analysts’ estimates.

Tullow Oil climbed 1.6 per cent to 1,404 pence following confirmation that the company has discovered oil at its second well in Kenya.

EUROPE

EUROPEAN STOCKS fell, paring the Stoxx Europe 600 Index’s fifth straight monthly gain, as ArcelorMittal and BG Group reported disappointing results and euro-area governments pressured Greece to increase spending cuts in return for aid.

ArcelorMittal dropped 6.6 per cent after the world’s biggest steelmaker posted its smallest quarterly profit in almost three years. BG Group sank a record 14 per cent as its energy company’s production forecast disappointed investors.

Airlines bucked the trend, with Air France-KLM Group and Deutsche Lufthansa AG both gaining at least 7 per cent after Europe’s largest airlines reported earnings that beat estimates.

National benchmark indexes fell in 15 of the 18 western-European markets.

France’s CAC 40 slid 0.9 per cent and Germany’s DAX slipped 0.3 per cent.

US

US STOCK markets fell after reopening following two days of unplanned closures as a result of Hurricane Sandy.

Apple dropped 1.5 per cent in early trade after chief executive Tim Cook embarked on a sweeping management overhaul at the world’s most valuable company.

Western Union, the world’s biggest money-transfer business, plunged 28 per cent to $12.85 after cutting its profit forecast for 2013.

Good news was brewing for home improvement retailers as a result of the storm with companies like Home Depot and Lowe’s Cos. advancing amid speculation the home-improvement retailers would be helped by spending related to the storm.

General Motors rallied 8.4 per cent after reporting third-quarter profit that surpassed analysts’ estimates.

The longest weather-related US trading suspension in 124 years has left money managers with one day instead of three to adjust their holdings before the fiscal year ends for more than 20 per cent of them. – (Additional Reporting: Bloomberg)