Most European markets up again

NATIONAL BENCHMARK indexes rose in all western European markets except Finland and Iceland yesterday. The Dow Jones Industrial Average was 0.2 per cent higher as the London market closed and the weakest US home sales figures since October only served to heighten expectations of more quantitative easing.

DUBLIN

IT WAS a steady day on Dublin’s Iseq index with most share prices benefiting from the improved sentiment across Europe.

Notable movers included DCC whose shares were buoyed in advance of an interim management statement this morning. Its stock closed 3.39 per cent or 64 cent ahead at €19.54.

The recent strong performance of Providence Resources showed no signs of faltering. Ongoing confidence in the market that the exploration company can capitalise on its Barryroe oil discovery saw its shares closing up 7.27 per cent or 56 cent at €8.26.

Kenmare Resources gained too, adding 5.04 per cent or two cent at 44 cent on news of another placing to raise €40 million.

Paddy Power nudged forward on news that the introduction of a tax on online betting is to be deferred until January 1st next year. The company’s stock closed up 78 cent at €54.73.

Kingspan was up too, with one broker suggesting that buyers are coming back to the market with more confidence. Its shares closed 5.59 per cent or 35 cent stronger on €6.75.

CRH, however, fell back slightly, closing down 0.71 per cent or 11 cent at €15.35.

On foot of news that two European packaging companies put through prices increases yesterday, Smurfit Kappa, which stands to benefit, ended the day 4.59 per cent or 25 cent ahead at €5.70.

Aer Lingus and Ryanair were both up marginally.

LONDON

WITH WORLD markets rising on hopes the faltering world economy would trigger more stimulus measures from central banks, the FTSE 100 Index rose 28.4 points to 5714.2.

Grim updates from Halfords, JJB Sports, Kingfisher and Mothercare kept the retail sector firmly in the spotlight. BQ owner Kingfisher was among the top flight fallers with margins hit by the need to discount summer stock, shares fell 3.6p to 271.6p.

Car parts and cycle chain Halfords issued a profits warning and said its chief executive, David Wild, had stepped down with immediate effect after like-for-like sales slumped 7.5 per cent in the first quarter of its financial year. Shareholders took the news in their stride and stock rallied 4 per cent or 8.4p to 205.8p in the FTSE 250 Index.

Mothercare was also higher, climbing 9.5p to 214.8p, as it offset a 6.7 per cent drop in UK like-for-like sales by reporting strong sales growth overseas.

Meanwhile, Lloyds Banking Group was among the risers after it announced a deal with the Co-operative Group to sell the 632 branches it was ordered to offload after taking a bail-out. Shares were up 0.5p at 30.2p.

EUROPE

EUROPEAN STOCKS advanced for the third time in four days after lenders including Credit Suisse reported profits that beat estimates. The second-biggest Swiss bank, jumped 4.5 per cent to 17.91 Swiss francs after announcing a higher cost cutting-target and boosting capital.

Bankia, the Spanish lender controlled in part by the government, jumped 14 per cent to €60.50, reversing an earlier decline of as much as 9.3 per cent. Spain will introduce legislation to prevent banks miss-selling preferred stock to retail investors after savers lost money on the securities.

Ericsson rose 2.2 per cent to 60.20 kronor, reversing an earlier decline of as much as 5.1 per cent. The biggest maker of mobile network equipment reported second-quarter profit that missed analysts’ estimates as wireless carriers curbed spending to cope with a slowing global economy. Net income fell 64 per cent to 1.11 billion kronor, Stockholm-based Ericsson said.

NEW YORK

IN THE US stock futures rose, indicating the Standard Poor’s 500 Index would advance for a third straight day, amid better-than-estimated earnings at companies from IBM to EBay.

IBM, the biggest computer-services provider, climbed 2.5 per cent to $193 after also boosting its profit forecast. Its decade-long shift to higher-margin software sales helped the company overcome a slowdown in technology spending last quarter.

EBay surged 6.5 per cent to $43.10 as more US consumers shopped for new items on the site.

Morgan Stanley slumped 4.9 per cent after the bank reported a 50 per cent decline in earnings.

Philip Morris International added 1.1 per cent to $90.35. The world's largest publicly traded tobacco company reported second-quarter profit that beat analysts' estimates, spurred by demand for cigarettes in Eastern Europe. – (Additional reporting: Bloomberg)