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ISEQ fails to follow rising world market

Wednesday, October 17 17:36:37

The ISEQ languished in the Doldrums today while world markets bounced back with trading in Dublin slow after a modest recovery yesterday.

At the close, the index was up 2.13 points to 3,273.16.

Europe's equity market powered to three-week highs today, with the Madrid bourse and the banking sector bolstered by news that Spain had escaped a rating downgrade to 'junk' and hopes that it will soon seek a bailout.

Rating agency Moody's late on Tuesday affirmed Spain's investment grade rating on the assumption that Madrid would formally ask for help and trigger the European Central Bank's sovereign bond buying rescue plan.

The all-contract price at the latest Global Dairy Trade (GDT) auction event on October 16th rose by 1.8pc, Davy noted today. Results were mixed across the various products. WMP led the increases with a 9.2pc gain. Cheddar with a 9.9pc fall overall was weakest. "It could be described as a mixed result, with some prices up and some down, but the rise in the WMP price (9.2pc overall and ranging 7.0-9.7pc across the contract periods) was the most significant. This is the most globally traded dairy product and its price rise will be seen as underpinning the run-up in dairy prices since mid-year. Prices at GDT have risen in five of the last seven events with the amplitude of rises much greater than declines. US cheese prices (CME) fell on the back of the GDT result - a big gap exists between the US cheese price and prices elsewhere. This may exert some downward pressure on US prices which have surged over the past few months," the broker said.

Shares in Kerry Group fell 10c to E40.20, Aryzta was up 50c at E39.00 and Glanbia dipped 1c to E7.23.