Monday, October 15 14:25:32
The ISEQ hardly moved today as markets await concrete information on whether Spain will formally seek a bailout.
By 2pm, the ISEQ was up just 1.79 points to 3,243.52.
European equities were higher around midday today, reversing the previous session's losses, lifted by expectations that struggling Spain will request a bailout which would lower its borrowing costs. At 1030 GMT, the FTSEurofirst 300 index of top European shares was up 0.6 percent at 1,100.00 points, after losing 0.5 percent on Friday.
Meanwhile, the Troika return to Dublin this week as the eighth review of Ireland's Programme gets under way. Given we already know that Ireland has met its fiscal targets and made a successful return to bond markets a positive statement on the completion of the review is very likely. "Ireland is considered to be the success story among the programme countries. This can be seen clearly in the movement of the 8-year Irish bond yield which now stands well below the 5pc level having been as high as 14pc in the summer of 2011. We still have our doubts. There remains a long journey ahead to reduce the budget deficit to sustainable levels and return growth to the domestic economy, while European policy concerns are still very much present (this week's European Council will be important). There is no place for complacency," according to Goodbody's Dermot O'Leary.
At home, shares in Kenmare Resources rose 2c to E0.47. Goodbody's said that Kenmare is "driven by the perceived long-term pricing benefits to be derived from emerging market demand for TiO2 and zircon, while acknowledging a lack of price transparency and volatility. The former contributed to significant price increases in 2010 and 2011. The latter has been more evident year-to-date, confirmation of which was provided by recent statements both from Kenmare and Iluka"
Shares in Smurfit Kappa fell 9c to E8.07. RISI has released its latest monthly update on European paper and packaging markets in which it has cut industry forecasts based on a weaker view on the macro prospects for Europe. "Corrugated box shipments are expected to increase by 0.6pc in FY13, a 200bp downgrade. This weaker outlook on demand coupled with a lower input cost inflation forecast has resulted in RISI pulling back its pricing forecasts for 2013 and 2014," said the broker.