Tuesday, October 02 17:37:01
The main Dublin shares index bounced back above the 3,300 level in a morning trading rebound but dipped back under again at the close as initial enthusiasm about the prospects for an imminent Spanish bailout request faded.
The ISEQ was up 20.30 points to 3,299.62.
Euro zone sources were reported as saying that Spain was ready to request a bailout as early as next weekend, but German officials said Madrid should hold off. European stocks have rallied sharply since late July, when European Central Bank head Mario Draghi said he was ready to do whatever it took to save the euro, later announcing a bond buying programme to cut the borrowing costs of struggling states. The Euro STOXX 50 surged as much as 22 percent, hitting a six-month high in mid-September, but has since lost steam, halted by doubts over whether Spain is willing to request a bailout, a condition for the ECB to start buying the country's bonds.
CRH peer, Wolseley has reported 2012 (to end of August) trading profit of £665m, which represents year on year growth of 7pc (split 13pc / 2pc H1 /H2). The slowdown in growth reflects an increase in like for like sales of 4pc versus 5pc in the first half. This all translated into an EPS of circa 167p which compares to Bloomberg consensus of 165p. Shares in CRH rose 4c to E14.87.
According to Chinese customs, imports of OCC to China in August grew 17pc mom to 1.56m tonnes. This represents a 29pc increase yoy (18.5pc in July / 6.5pc in June) and leaves the cumulative ytd figure up 14.6pc. This data coincides with a period of stability in OCC prices in both the FOEX and RISI price indices. Stability in OCC prices will provide support for the testliner price increases being implemented at present. Indeed, if we see OCC prices begin to increase testliner producers will have more firepower to implement the second leg of the E100/tonne price increase. "The overall dynamics of the pricing cycle continue to show encouraging signs. We reiterate our BUY recommendation on Smurfit Kappa and DS Smith, with the added benefit of M&A integration for both companies to play out over the coming months," said Goodbody Stockbrokers. Shares in Smurfit Kappa rose 6c to E8.02.