Positive sentiment boosts Iseq

Good news from the US buoyed equities today, driving up benchmark indices at both sides of the Atlantic.

The number of people claiming unemployment payments in the US fell 19,000 to 366,000 last week, its lowest level since 2008. At the same time, US and German manufacturing showed signs of growth going into 2012.

The positive sentiment boosted shares in Dublin, lifting the benchmark Iseq index by more than 1 per cent to 2,708.27. However, dealers pointed out that trade was light on the Irish market.

The Stoxx Europe 600, which measures leading shares in 18 markets, gained 1 per cent to close at 234.73.

In London, the FTSE added 0.6 per cent to end the day at 5400.85.

Packaging group, Smurfit Kappa, was Dublin’s star turn, jumping 8 per cent to €4.539, helped by a note from stockbroking firm, Davy, which rated it a buy and argued that its price was underperforming.

Building materials group, CRH, rose 1.5 per cent to €13.38 ahead of its being included in London’s benchmark FTSE 100 index from close of business tomorrow.

The Iseq is rebalancing tomorrow. This will be good news for food group Kerry, which added 1.08 per cent to close at €27.715, and titanium miner, Kenmare, which rose 1.8 per cent to 50.4 cent.

Bookmaker Paddy Power, which earlier this week announced that it would be providing risk management services to the Canadian Lottery’s sports betting division, was also strong, gaining 1.3 per cent to end the day at €40. It touched €40.40 during the afternoon, but dropped back just ahead of the close.

Cider maker, C&C, closed almost 0.9 per cent up at €2.827 as investors presumably anticipate that sales will get an extra seasonal fizz.