Stronger CRH and Ryanair drive Iseq forward

Iseq:2,441.33 (+36.59) Settlement date:September 29th

A TENTATIVE recovery in European shares that began late on Friday lasted for much of yesterday’s trading, as investors remained of the view that policy makers will act to resolve the euro zone debt crisis.

There were gains across the board in the middle of the day on speculation that the European Central Bank might consider restarting covered bond purchases. A better than expected survey of German economic sentiment also contributed to the positive mood.

As scepticism crept into investor sentiment in the afternoon, the gains were pared in the final hours of trading, meaning there was no full-blown rally, but the major European indices managed to close up on the previous session.

The Iseq closed 1.5 per cent higher, outperforming the FTSE, which finished 0.5 per cent ahead.

The Iseq’s performance was the result of advances by all of the heavy hitters. Building materials group CRH rose 3 per cent to €11, while Ryanair climbed 1.6 per cent to €3.25.

Pharmaceutical group Elan posted the largest percentage rise on the main market, as a 5 per cent gain helped it to a closing price of €7.40.

The big local stock news of the day was the publication of full-year results by food group Aryzta, which beat forecasts with a 27 per cent gain in earnings per share and a rise in margins.

Food analysts at Davy Research described its results as “an excellent achievement” in the context of the bakery and food service sectors in which it operates.

Aryzta has its main listing in Zurich, where it climbed 2.3 per cent. On the Dublin market, it rose 2.7 per cent to €32.80.

Elsewhere, there were gains for Independent News & Media and Aer Lingus, while AIB, Glanbia, CC and Kenmare all fell.