Strong profits forecast acts as tailwind for Ryanair

Iseq: 2,665.13 (+0.59) Settlement date: November 10thA FACEBOOK update from Silvio Berlusconi asserting he had no plans to resign proved significant enough to pare a rally in European equities yesterday afternoon.

Markets had advanced earlier in the day on reports that the Italian prime minister was due to make an exit, amid intensifying concerns that Italy’s borrowing costs are unsustainable.

Despite the drama, which saw Italian 10-year bond yields close at euro-era highs, it was a relatively flat finish on the major equity markets. The FTSE, the French Cac and the German Dax indices all finished down less than 1 per cent, while in Dublin, the Iseq was little changed.

With Iseq heavyweight CRH ending down 2 per cent at €12.52, the Irish market was kept afloat by a 5 per cent gain for Ryanair. The airline closed at €3.52, after it released better than expected half-year numbers and raised its full-year earnings guidance by 10 per cent to €440 million.

The positive tone of its outlook statement was well received by investors on the day.

The interest in Ryanair also prompted a lift of almost 3 per cent for Aer Lingus, which closed at 70 cent.

Reports that Paddy Power is to lose its chief operating officer Breon Corcoran to rival Betfair, where he is set to join as chief executive, might have been expected to cause a dent in its share price, one Dublin dealer noted. However, its 1.25 per cent fall was not especially significant, he added. It closed at €39.50.

Food group Kerry slipped 0.8 per cent to €26.31, with most of the trading volume occurring at the €26.40 level. Paper and packaging company Smurfit Kappa, meanwhile, fell 1.25 per cent to €4.74.

Markets are expected to be volatile again today as Europe’s finance ministers continue their two-day meeting in Brussels.