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ISEQ closes the week below 3,300

Friday, November 30 17:33:51

Later trading on the ISEQ saw the index dip back under the 3,300 level after yesterday's gains as investors await leads.

At the close, the index was down 10.46 points to 3,290.27.

European stocks ended almost unchanged, posting solid monthly gains as investors bet the worst of Europe's debt crisis is over and that a deal in U.S. budget talks will be reached before the year-end. The FTSEurofirst 300 index of top European shares ended 0.08 percent lower at 1,120.89 points, after hitting a high of 1,125.12 during the session, a level not seen since July 2011. The index posted a gain of 2.2 percent for November, its sixth straight positive month - the index's longest run of successive monthly gains in eight years.

With Budget day looming next Wednesday, December 5th, speculation surrounding the planned measures has intensified in the last number of days. The focus of coverage has inevitably been the proposed property tax. Media reports yesterday suggested that a 0.2pc tax will be levied and collected through the PAYE system, avoiding a re-run of the household charge debacle in 2012. So, a house price of E175,000 would yield E300 to the exchequer. The measure is expected to be introduced in July of next year.

BakingBusiness.com reports that Glanbia is to build a 40,000 sq.ft. plant at Sioux Falls, South Dakota, which will produce whole and milled flaxseed ingredients as well as other seed and grain products. The facility replaces one in Canada which was destroyed by fire in March this year. Shares in Glanbia rose 1c to E7.91.

At IFG's investor day in London, Towers Watson forecast that SIPP new business volumes would rise from a projected £10.7bn in 2012 to £13.5bn in 2016 (CAGR of 6pc). Stressing that firm market data are not available, TW estimates gross sales were £11-£12bn in 2011. It notes that distribution is dominated by IFA advised sales. Key assumptions in the TW model are the impact of economic conditions on risk appetite/disposable incomes; tax planning issues; advisor business models and capacity (numbers); regulation; and retirement income market trends. IFG shares were flat at E1.40.