THE SPECTACULAR results from Apple failed to create much of a follow through in the markets, which continued their recent inclination towards consolidation and caution.
DUBLIN
MARKETS MARKED time yesterday as traders struggled to find reasons to justify pushing ahead from last week’s gains. The ECB supportive measures for the European banking system and its ongoing low interest rate policy is supporting equity markets, but investors are none-the-less unsure as to their view on risk.
The Iseq ended the day down 0.2 per cent, a performance that mirrored many of its peers across Europe.
One of big movers of the day was IFG, which jumped by 9.8 per cent on the day, to close at 1.12. Traders said the move was due to One51 selling off its stake in the firm, which was seen as an overhang on the stock. It was interpreted as One51 engaging in reorganising its portfolio in the wake of the departure of Philip Lynch, traders said.
The exchange was told that Fiordland Investment Ltd and Peter Priestly, had crossed a 22 per cent threshold in the stock on January 24th. No other stock moved to any comparable extent. Drinks group C&C rose 2.25 per cent, to close at €3.18. Elan rose 1.99 per cent, to €10.53.
At the opposite end of the spectrum food group Glanbia fell 2.03, per cent to close at €4.83, while Aryzta fell 1.47 per cent to close at €33.3. Kenmare Resources fell 1.76 per cent, to €0.55.
CRH continued to weaken after its earlier strong run. It closed down 1.6 per cent, at € 1.05.
Ryanair rose 1.78 per cent, to €4, while its competitor airline, Aer Lingus, 0.13 per cent, to €0.75.
LONDON
BRITAINS TOP shares closed lower as banks fell out of favour after brokers urged caution on the sector after recent gains, while poor growth in the UK highlighted the challenges facing corporates to meet earnings expectations.
London’s blue chip index closed down 28.90 points, or 0.5 per cent at 5,723.00, as the FTSE 100 retreated from six-month highs hit on Monday, but held above 5,700 - the level it had struggled to close above since last August.
Banks were the main fallers, having risen about 15 per cent early in 2012, compared with about a 3 per cent gain on the UKs benchmark index, as analysts at UBS and Macquarie cast doubt over the sustainability of the recent rally.
Royal Bank of Scotland shed 1.1 per cent as UBS cut its rating on the majority state-owned lender to “neutral” from “buy”. UBS said worries over earnings, its exposure to Ireland and the challenging sale of noncore assets would see pressure mounting on RBS’s shares in the run-up to results due on February 23rd. Macquarie also downgraded its recommendation on RBS, to “underperform” from “neutral”, in a broader note on banks.
Lloyds Banking Group and Barclays fell 2.3 and 0.5 per cent respectively as Macquarie compared the current European crisis with that in Japan in the 1990s and concluded the recent rally is an opportunity to take profits.
Royal Dutch Shell and BP shed 1.6 and 0.6 per cent, respectively, as JPMorgan cut its 2012/13 earnings estimates for both firms by up to 10 per cent.
EUROPE
EUROPEAN STOCKS fell for a second day after Ericsson and Novartis posted earnings that missed analysts’ estimates.
Ericsson, the world’s largest maker of wireless networks, plunged 14 per cent after reporting fourth-quarter net income that missed analysts estimates.
Novartis, Europe’s biggest drugmaker by sales, declined 2.5 per cent. ARM Holdings climbed 3 per cent after Apple posted quarterly profit that more than doubled.
The benchmark Stoxx Europe 600 Index slipped 0.4 per cent to 254.95 in London. The gauge has still risen 4.3 per cent so far this year amid signs that the US economy is recovering and as investors speculated that the euro area will contain its debt crisis and China will reduce curbs on lending.
National benchmark indexes fell in 12 of the 18 western-European markets. Frances CAC 40 Index declined 0.3 per cent and Germanys DAX Index added less than 0.1 per cent.
US
US STOCKS rallied, erasing an earlier loss in the Standard Poors 500 Index, as the Federal Reserve said interest rates will remain low until late 2014 and Apple rallied after earnings more than doubled.
Apple jumped 5.9 per cent to $445.33. The gain gives Apple a market value of about $419 billion, higher than Exxon Mobil’s $414 billion.
Quarterly profit more than doubled as surging demand for the iPhone and iPad cemented its role as the most valuable technology company and ramped up pressure on rivals Google and Samsung Electronics. – Additional reporting, Bloomberg
