Friday, October 04 12:54:11
The ISEQ managed some small gains this morning in nervous trading as investors awaited developments in the US Budget impasse.
By 12:45, the ISEQ was up 13.75 points to 4,274.51.
European shares edged up to end a two-day losing run, with Deutsche Telekom outperforming, while expectations of an eventual deal on the United States' debt issues also propped up equities.
At home, Production for Manufacturing Industries for August was 1.0pc lower than in July and fell by 6.7pc compared to a year ago, latest CSO data shows today. The seasonally adjusted volume of industrial production for Manufacturing Industries for the quarter June 2013 to August 2013 was 2.5pc higher than in the preceding quarter. The "Modern" Sector, comprising a number of high-technology and chemical sectors, showed a monthly increase in production for August 2013 of 0.4pc. There was a monthly increase of 0.9pc in the "Traditional" Sector.
Davy today identified eight stocks which we believe can outperform the broad market into the end of the year. Among the Irish stocks were Aryzta, whose shares climbed 44c to E52.04. "At 14 times our forecast 2013 earnings, ARYZTA remains one of the cheapest food stocks in the sector. The company continues to make progress towards delivering its target 15pc return on capital through a combination of top-line growth and internal restructuring. This potential improvement in returns is not reflected in the valuation," the broker said.
Also mentioned is Ryanair: "The airline's recent order for 175 new aircraft, combined with its low-cost structure, will ensure decent profit growth over the next five years. Strong free cash generation will fund ongoing capex and provide the potential for share buybacks/special dividends. The recent weakness in the share price provides an attractive entry point," the broker said. Shares in Ryanair rose 1c to E6.31.