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ISEQ powers ahead on new optimism

Friday, September 14 12:56:37

The ISEQ powered ahead this morning on renewed optimism after the ECB bond buying deal this week was followed by a robust stimulus package from the Fed in the US.

By 12:45, the index was up 50.59 to 3,313.10.

Europe's stock markets rose to a 14-month high today after last night's announcement by the Federal Reserve of a third round of quantitative easing. The Fed will purchase $40bn of mortgage-backed securities on an open-ended basis, with chairman Ben Bernanke indicating that an ongoing, sustained improvement in the labour market will be required before a decision is made to halt QE3. This means that purchases could equal $480bn per annum, although with total purchases reaching $85bn a month in 2012 given the Fed's existing planned purchases of long-term debt under 'Operation Twist'.

CRH shares climbed 53c to E15.95.

Kingspan's shares rrose 16c to E8.23 after its European peer, Rockwool held an investor day in southern Germany. The focus of the day was the German insulation market, along with a discussion and demonstration of the fire properties of the Rockwool product compared to some of the alternatives. "The Rockwool day showcased the structural attractiveness of the European insulation sector, a market it shares with Kingspan. The update on the German insulation market was timely following Kingspan's recent acquisition of the Thyssenkrupp Construction Group. That transaction significantly increased Kingspan's position in the German insulation market. In our view, the structural growth opportunity and the potential the Thyssenkrupp deal brings are two key components of the Kingspan investment case. The Rockwool event served to reinforce that view," said Davy's Flor O'Donoghue.

Aryzta's shares were flat at E39.85. Manufacturer selling prices of baked goods in the US increased at a slower rate than overall food prices in August, according to the Producer Price Index (PPI) for the month. Seasonally adjusted, the PPI for overall food rose by 0.9pc month-on-month (mom); this compared with a 0.2pc increase for bakery products. The unadjusted year-on-year (yoy) comparison saw a 2.4pc rise in bakery products compared with a 2.0pc rise for finished consumer foods overall.