ISEQ makes biggest gain as European markets rally

IRELAND’S ISEQ index showed the highest growth yesterday in percentage terms among European stock exchanges, on what was a positive start to the week for international markets.

The ISEQ closed at 2,691 points — a 62 point/2.35% rise on Friday’s finish — boosted by good gains for the likes of CRH, Fyffes, DCC, Aryzta, Abbey, Dragon Oil, Paddy Power and Kerry Group.

However, yesterday also showed some significant fallers in Dublin, such as Tullow Oil, Donegal Creameries, FBD, Glanbia, Irish Continental Group (ICG) and recruitment specialist, CPL Resources.

Bank of Ireland was up by 2%, at 10c, on the back of news that international property group, Kennedy Wilson Holdings — one of the private investors who recently pumped a combined €1.12 billion into the bank — has agreed to buy a further loan portfolio from it for $1.8bn. Earlier this year, Kennedy Wilson acquired BoI’s real estate investment management division.

International markets were up on the back of a slight return to optimism over the eurozone debt crisis and latest monthly data showing a moderate return to growth in China’s huge manufacturing sector in October.

In the first day of trading following the weekend’s euro summit, investors seemed more confident over the possibility of a deal being struck on the debt crisis. EU officials were quoted yesterday as saying that a deal to write off around half of Greece’s €350bn debt was “relatively close” to being agreed. Taoiseach Enda Kenny said, ahead of Wednesday’s resumption of talks, that he had become more hopeful of a comprehensive deal being signed to help solve the eurozone’s lingering problems.

Of the big European bourses, London’s FTSE was up by just under 1.1%, the DAX in Frankfurt gained 1.4%, the CAC in Paris was up by 1.55% and Madrid’s IBEX index gained nearly 1.2%. European stocks, on a whole, were up to their highest level for eleven weeks.

In midday trading in New York; the Dow Jones was up by 0.7%, the Nasdaq was up further at just over 2% and the S&P 500 was showing gains of just over 1%. In earlier trading, impressive gains were evident in Asia; with the Nikkei in Tokyo up by just under 2% and the Hang Seng in Hong Kong ahead by just over 4%.