Friday, January 25 13:00:33
The ISEQ made progress again today after yesterday's strong gains as investors were cheered by a rise in German business morale and some good earnings results from the US and Europe.
By 12:45, the index had gained 11.09 points to 3,540.99.
Goodbody Stockbrokers noted that Troika officials due back in Ireland next week for the ninth review of the programme, the key items on the agenda are becoming evident. The Irish Times reports this morning on the "menu of options" that is being proposed by the Troika for Ireland to achieve a smooth full return to the bond markets. A funding backstop, or, as it is put in the article today, "comfort funding", will be one of the options put on the table for Ireland. This option has been mooted over recent weeks and is certainly under discussion in Irish policy circles. Indeed, Finance Minister Noonan appeared to be warm to the idea, saying in Davos yesterday that "We don't want to go back into the market and fall out of it again".
Kerry Group shares rose 40c to E38.10. McCormick released FY12 results yesterday afternoon, with local currency growth for FY12 +10pc yoy. The growth was attributed to both higher pricing and volume growth. Q4 sales were +4pc yoy on a constant currency basis (EMEA +9pc, Asia/Pacific +7pc, Americas flat), with pricing up 3pc, volumes flat and acquisitions contributing 1pc growth. "The read-through for Kerry is probably limited as the performance of McCormick's industrial business appears to be company specific. In terms of outlook for 2013, McCormick anticipates sales growth in the range of 3-5pc. We expect Kerry will have c.5pc growth in FY13 (+3pc Volumes, +2pc pricing). McCormick forecasts cost inflation of 3pc for FY13, Kerry previously talked about 4pc inflation, however, we believe inflationary pressures have eased off somewhat," said Goodbody's Liam Igoe.