IFG Group News

Lenders biggest gainers as signs of growth spur ISEQ to 2pc rise

14 Aug 2009

IRISH shares rose yesterday buoyed by signs of an improvement in the domestic and international economies.

The ISEQ added 56.72 points, or 2pc, to close at 2948.93, led higher by financial services companies and building materials companies that could gain from better economic growth.

Irish Life & Permanent advanced 7.3pc after signs that demand for mortgages is rising once again. IFG, another mortgage lender, soared 7.7pc, while Allied Irish, Bank of Ireland and FBD all rose at least 2pc.

Buildings material giant CRH and smaller rival Kingspan also gained on hopes the resurgent economic growth will spur road building and other infrastructure spending. CRH advanced 3.1pc to €18.30, while Kingspan closed up 5.7pc at €5.55.

Greencore closed down 3.5pc at €1.39 after the supplier of ready meals said it was "on track" to meet analysts' estimates for full-year adjusted earnings per share of 16.4c, paring earlier gains of as much as 4pc as investors digested the company's statement.

Smurfit Kappa surged 5pc to €4.83 as the cardboard box maker was raised to 'buy' from 'hold' at NCB Stockbrokers in Dublin.

Decliner

The biggest decliner in Dublin was Glencar Mining, which tumbled 15pc to 9c after it said hedge fund Loeb Arbitrage Management had increased its holding in the company.

UK stocks rose to a 10-month high after Prudential posted earnings that beat estimates and the German and French economies unexpectedly expanded in the second quarter.

Prudential surged 11pc to 529.5p after US sales increased and the value of securities held by the UK's biggest insurer climbed. The insurer's US "retail sales were the highest in any first half in its history", chief executive officer Mark Tucker said in a statement.

Thomas Cook slid 4.8pc to 219p after the tour operator that recently made some Dublin staff redundant said it wouldn't meet its operating profit target for 2010.

Stocks elsewhere in Europe also rose as the German and French economies grew and the Federal Reserve said a recovery was under way.

National benchmark indexes gained in all 18 western European markets. France's CAC 40 added 0.5pc. The UK's FTSE 100 and Germany's DAX both climbed 0.9pc.