Fall in oil and commodites help to drive Iseq higher

Falling oil and commodity prices which helped to ease concerns over inflation boosted most markets today and helped push the …

Falling oil and commodity prices which helped to ease concerns over inflation boosted most markets today and helped push the Irish market into positive territory today, with the Iseq gaining 2.37 per cent or 106.67 points to 4,606.63 on light enough volumes.

Airline stocks were chief beneficiaries of the continued drop in oil prices which slipped towards $112 a barrel, with Ryanair's share price surging by more than 8 per cent as it added on 22 cents to €2.85. Aer Lingus closed the day more than 4 per cent stronger at €1.58.

However, the star performer on the day was pharmaceutical company Elan, jumping a massive 18.16 per cent, which saw its share price close at €8.98, a gain of €1.38, as buyers returned to the stock following its sell-off last year. The stock was also helped by continued speculation over the sale of its drug delivery unit and fairly decent volumes of around 400,000 shares traded.

DCC's announcement that it had agreed to pay €27.52 million to buy oil giant Chevron's UK distribution division was well received by the market with the stock gaining 43 cents to €15.98.

Banks generally enjoyed a positive day with AIB being the only exception as it underperformed, losing 10 cents to €8.65.

Anglo Irish Bank, which traded more than 3 per cent stronger at one stage, eased back by the close of business but was still 1.16 per cent stronger at €6.353. Bank of Ireland was marginally stronger as it added 2.3 cents to €6.07.

However, Irish Life & Permanent enjoyed the greatest gains as it advanced more than 4 per cent, gaining 25 cents to €6.05.

Among the construction stocks, CRH was one of the better performers as it picked up 9 cents to €18.25 on positive US sentiment. However, Grafton ended the day more than 1 per cent weaker at €4.22, while Kingspan's share price fell 3.2 per cent to €6.77.

Overall, European stocks rose, led by retailers and airlines, as falling commodity prices eased concern that inflation will force central banks to lift interest rates.

National benchmark indices climbed in 11 of the 14 western European markets. France's CAC 40 added 0.7 per cent, and Germany's DAX was little changed. The UK's FTSE 100 lost 0.8 per cent, dragged lower by commodity producers.