Iseq rise bucks European trend

After a third quarter to forget, the new quarter on the Iseq index began with more of a whimper than a bang, as a cycle of meetings-about-meetings continued to dominate the work schedules of European policymakers.

"It was like Christmas day today it was so quiet," observed a Dublin-based equities dealer. A holiday to mark the reunification of Germany meant its stock market, though open, there were fewer investors at play, which contributed to the thinner volumes on the Iseq.

Bucking the trend across Europe, the Dublin market managed to advance 0.6 per cent, outperforming the FTSE, the German Dax and the French Cac.

Indeed, national benchmark indexes retreated in all 18 western European markets, except for Ireland, with investors remaining generally wary following indications that Greece will miss targets to cut its budget deficit.

On the Iseq, index heavyweight CRH closed up 2.2 per cent at €11.90, amid a bit of trading activity in the construction sector. This followed reports that a board member of Holcim, the world's second-biggest cement-maker, plans to increase his stake in the company.

Cider maker C&C continued its drift downwards, closing at €2.80, down 1 per cent, as dealers noted that austerity policies were trickling down to the drinks sector.

Denmark, meanwhile, has imposed what is thought to be the world's first "fat tax", which is to say that it has imposed a tax on saturated fat per kilogram in food products.

A note to investors from food analysts at NCB Stockbrokers interpreted the trend towards fat taxes and its accompanying push by food manufacturers to develop healthier products as positive in the long run for an ingredients company such as Kerry (which closed down 1 per cent at €25.93).