Business

Glanbia gains lift Irish index on Wednesday as world stocks slump

World stocks dipped on Wednesday amid a spate of disappointing earnings reports, as investors also await US and euro-zone inflation data

UK shares fell on Wednesday dragged by a raft of dismal earnings updates. Photograph: Hollie Adams/Bloomberg

Ellen O’Regan
Wed Feb 28 2024 - 18:16

World stocks dipped on Wednesday amid a spate of disappointing earnings reports, as investors also awaited US and euro-zone inflation data later this week.

In Dublin, the Iseq Index was boosted by “shining light” Glanbia, outperforming European peers.

Dublin

Euronext Dublin finished up 0.37 per cent at 9,530.01, as the Iseq All Share index was boosted by a strong performance from “shining light” Glanbia, according to traders.

Glanbia gained 7.66 per cent on Wednesday to close at €17, after the food company announced a 20 per cent jump in profits last year to $298.1 million (€275 million). Peer Kerry Group also gained on Wednesday, rising by 0.73 per cent to €80.10.

READ MORE

The Irish banks showed signs of recovery following a slump earlier this week when Bank of Ireland reported weaker-than-expected profits for 2023. Bank of Ireland gained 0.22 per cent on Wednesday to close at €8.34, while AIB rose by 1.26 per cent to €4.33. At the same time, Permanent TSB fell by 1.27 per cent to close at €1.56.

Glenveagh Properties fell by 2.02 per cent to €1.16, despite the home builder reporting that gross profits rose by 4 per cent last year to €112.7 million. Fellow housing developer Cairn Homes rose by 0.27 per cent to close at €1.49, as investors awaited its financial results due on Thursday morning.

Hotel group Dalata saw shares fall by 2.92 per cent to €4.65 as investors anticipated results for the Maldron and Clayton hotel operator, also due on Thursday.

Building materials company Kingspan rose by 0.55 per cent to €84.76, while packaging company Smurfit Kappa gained 2.46 per cent to €39.10.

Budget airline Ryanair fell by 2 per cent to €20.11, and insurer FBD Holdings fell by 0.79 per cent to €12.60.

London

UK shares fell on Wednesday dragged by a raft of dismal earnings updates. The export-heavy FTSE 100 index fell by 0.74 per cent to 7,626.27, while the more domestically focused FTSE 250 mid-cap index was down 0.78 per cent to close at 19,013.58.

Wealth manager St James’s Place fell 18.55 per cent to the bottom of the FTSE 100 after swinging to an annual loss.

Meanwhile consumer goods group Reckitt Benckiser fell by 13.29 per cent after it missed fourth-quarter like-for-like net sales expectations, citing declines in the sales of cold and flu season products.

Home builder Taylor Wimpey lost 4.77 per cent after it flagged persistent weakness in the housing market amid delay in interest rate cuts and persistent macroeconomic concerns.

Europe

European shares also dipped on Wednesday, as the Stoxx 600 index declined 0.32 per cent to close at 494.74. However, among individual European markets, the German Dax Index rose by 0.25 per cent to 17,601.22 and the French CAC 40 gained 0.08 per cent to 7,954.39.

Shares in French retail group Casino Guichard fell by 21.85 per cent to the bottom of the Stoxx 600, after the company posted a net loss for 2023, reflecting falling sales and the impact of disposals and its restructuring.

Worldline shares fell 9.51 per cent after the French payments firm reported a full-year loss after it took a €1.15 billion “goodwill impairment” linked to its merchant services activities.

Swisscom dipped 1.37 per cent following exclusive talks to buy all of Vodafone Italia for €8 billion and merge the business with its Italian subsidiary Fastweb. Shares in Vodafone fell by 0.16 per cent.

New York

Wall Street’s main indexes slipped on Wednesday in advance of an inflation reading on Thursday that could influence expectations about when the US Federal Reserve will start cutting interest rates.

Data on Wednesday confirmed the US economy grew in the fourth quarter amid strong consumer spending but it appears to have lost some speed early in the new year.

UnitedHealth declined after a report on Tuesday said the US department of justice has launched an antitrust investigation into the healthcare conglomerate.

Beyond Meat surged as plant-based meat maker promised price hikes and steep cost cuts to turn around its battered margins.

Ecommerce platform eBay gained as quarterly results beat expectations, while dating app Bumble declined on a disappointing first-quarter revenue forecast.

Shares of major cryptocurrency firms Coinbase Global and Marathon Digital both climbed as bitcoin surged past $61,000 (€56,274). – Additional reporting: Reuters.

Ellen O'Regan

Ellen O’Regan

Ellen O’Regan is an Irish Times journalist.

LATEST STORIES