Flutter fans rally in travel and leisure sector

European shares rose on Friday after drugmakers rebounded following a slump in the previous session, and Flutter fanned a rally in the travel and leisure sector after an upbeat earnings forecast.

DUBLIN

The Irish market rose 2.7 per cent, boosted by a 14 per cent surge in Flutter Entertainment’s shares as the betting group said it saw no signs of a consumer slowdown and reduced spending levels across its businesses. The Paddy Power-owner delivered revenue growth of 9 per cent in the first six months of the year, driven by a 14 per cent increase in its recreational player base. In the US its FanDuel subsidiary has grown strongly and increases Flutter’s market share to 51 per cent.

Bank of Ireland saw its shares gain 3 per cent to €5.97, bouncing back from Thursday’s decline amid conflicting signs about peak inflation. AIB shares added 0.7 per cent to close at €2.30, while Permanent TSB fell 2.6 per cent to €1.48 by the end of the session.

Insulation specialist Kingspan Group saw its shares dip again, by almost 2 per cent, to €62.42.

LONDON

The FTSE 100 closed on a high despite a series of doomsday energy price cap predictions casting a shadow over the week. The London index closed 34.98 points higher, or 0.47 per cent, at 7,500.89.

Pharma giant GSK saw a moderate lift in its share price, a day after market speculation around litigation over heartburn drug Zantac sent shares sliding. GSK issued a statement on Friday rejecting allegations that using Zantac increases the risk of cancer, referring to scientific evidence to defend itself against the claims. Investors reacted to the statement and shares went back up on Friday, lifting 50p to 1,450p.

William Hill-owner 888 posted a 13 per cent drop in revenue to £332 million in the first six months of the year and said its pretax profits fell two-thirds to £332 million. Shares in the company slumped by 12 per cent following the news, closing 17.3p lower at 142.7p on Friday.

EUROPE

The Stoxx 600 index, up for a third straight day, notching weekly gains of 1.2 per cent as positive earnings and a softer-than-expected US inflation reading calmed nerves around aggressive rate hikes by the Federal Reserve, though concerns remain over policymakers’ path.

The index gained 0.2 per cent over the day, with travel and leisure stocks up almost 4 per cent to more than two month highs, leading sectoral gains.

Roche rose 1.6 per cent after the drugmaker received approval from the US Food and Drugs Administration for its Xofluza drug to treat influenza in children aged five years and older. Shares in Sanofi and Haleon rose after the drugmakers said that nothing material had changed regarding US litigation focused on Zantac. The stocks had fallen sharply this week on concerns over potential cancer-causing impurities that prompted the drug’s withdrawal from markets.

NEW YORK

Wall Street’s main indices rose on Friday, setting the S&P 500 and the Nasdaq up for a fourth straight week of gains and easing bets of another supersized interest rate hike on evidence of cooling inflation.

The S&P 500 briefly crossed a closely watched technical level of 4,231 points, indicating it has recovered 50 per cent of its bear market loss. Ten of the 11 major S&P 500 sectors advanced in early trading, with communication services and information technology stocks leading the gains.

High-growth and technology stocks such as Apple and Alphabet rose 0.8 per cent each as investors returned to riskier assets.

The Dow Jones Industrial Average was up 278 points, or 0.84 per cent to 33,615.09 at lunchtime in New York. The broader S&P 500 fared even better adding 45.5 points, or 1.08 per cent to trade at 4,252.76 while the Nasdaqw Composite was 187 points ahead, or 1.46 per cent, on 12,967.12.

Rivian Automotive rose 1.3 per cent as the electric-vehicle maker reported better-than-expected second quarter revenue. – additional reporting: Reuters

(c) Copyright Thomson Reuters 2022