Stocks gain on strong corporate earnings

Stocks worldwide rose

yesterday on strong corporate earnings reports and relief over Greece’s debt issues, while the US dollar rallied on expectations the Federal Reserve will increase interest rates this year.

US stocks advanced and European shares hit a more than six-week high after the Greek parliament passed austerity measures demanded by its lenders to open talks on a new bailout package to keep Greece in the euro.

DUBLIN

The Dublin market was “reasonably strong” with most stocks faring better on the day, according to one analyst.

It was a good day for Permanent TSB, which surged ahead 2.7 per cent to finish the day at €5.06. There were also moves in the property investment trusts, particularly Hibernia REIT, which closed up 2.3 per cent at €1.29.

Shares in Aer Lingus were flat at €2.50. Shareholders yesterday backed the airline's €1.36 billion sale to British Airways owner International Airlines Group (IAG).

Ryanair was one of only a handful of stocks which declined on the Irish market yesterday. Shares fell almost 1 per cent, to close at €12.60.

Dragon Oil rose marginally, finishing the day up 0.7 per cent at €10.38. The exploration firm's largest shareholder, Emirates National Oil Company, yesterday said it would no longer back payment of dividends to shareholders.

The Iseq index closed up 0.53 per cent, or 34.13 points.

LONDON

UK stocks rallied to the highest in almost a month on the FTSE 100 Index’s seventh straight day without losses, spurred by the European Central Bank’s renewed pledge to stimulate the region’s economy, and the increased likelihood of an end to Greece’s debt crisis.

Dixons Carphone climbed 1.5 per cent after beating forecasts with a 21 per cent rise in yearly profit. Shire rose 1.1 per cent after Berenberg said the drugmaker's 2020 sales target is more than achievable.

BP retreated 1.2 per cent after Goldman Sachs said the current dividend was not sustainable in the long term.

The FTSE 100 added at 0.6 per cent to 6,796.45 at the close in London.

EUROPE

Stocks in Europe rose for a seventh day as the European Central Bank increased emergency liquidity assistance to Greece and ECB president Mario Draghi said market uncertainty had not derailed the economic recovery.

Among stocks moving on corporate news, Swatch added 5.2 per cent after posting first-half profit that beat analysts' estimates and forecasting a strong end to the year.

Alfa Laval jumped 13 per cent, the most since December 2008, after reporting better- than-expected quarterly profit on higher demand for marine equipment as well as service orders.

Partners added 6.5 per cent after the Swiss private-equity investor raised its annual forecast for expected client commitments.

The Stoxx Europe 600 Index added 1.4 per cent at the close of trading, capping its longest winning streak since January. The euro zone’s blue-chip Euro Stoxx 50 index advanced 1.5 per cent, with Germany’s Dax and France’s Cac 40 also up by about 1.5 per cent each.

US

US stocks rose, with the Standard d Poor’s 500 Index nearing its all-time high, after the Greek parliament passed a bailout agreement, while companies including Netflix and Citigroup rallied on earnings.

Netflix rose as much as 16.6 per cent to a record high of $114.45 in early trading, a day after the company added nearly a third more subscribers than expected in the second quarter. The stock propelled the Nasdaq 100 to a record high.

EBay climbed 4 per cent after quarterly sales exceeded estimates and it agreed to sell its enterprise unit for $925 million. Citigroup added 3.2 per cent as costs cuts helped the bank's quarterly profit beat analysts' estimates. – (Additional reporting: Bloomberg, Reuters)