Iseq: 2,519.42 (+71.49) Settlement date: September 10th:DUBLIN RALLIED along with European markets yesterday as investors responded to news that US President, Barack Obama, is set to launch an economic recovery plan and a German court ruled in favour of the country's participation in euro zone bailout schemes.
While the good news gave investors some grounds for optimism,traders in Dublin said that markets were still nervous. They also regarded the news from the US as more significant than the German court ruling.
Traders noted that the volumes of shares changing hands yesterday were low. “You prefer to see bigger volumes on the good days,” said one Dublin broker. “We’ve tended to have light volumes on the good days and the bigger volumes on the bad days,” he added.
News that Barack Obama is set to spend up to $300 billion on his economic programme boosted the Dublin market’s biggest stock, CRH, which draws half its revenues from supplying the US construction industry. The building materials group gained more than 5.3 per cent to close at €11.91.
The Republic’s Minister for Transport, Leo Varadkar’s admission that the Government is considering the sale of its 25 per cent stake in airline, Aer Lingus, at about €1 a-unit gave the company’s shares a 6.3 per cent lift. The one-time flag carrier closed at 67.5 cent.
In the same sector, Ryanair, which owns almost 30 per cent of Aer Lingus, rose 4.3 per cent to close at €3.09. Positive news from one of its rivals, Easyjet, boosted the airline’s price.
Food group Glanbia also outperformed the market, gaining 5.95 per cent to close at €4.65. DIY and builders’ merchant, Grafton was another significant mover, adding 6.67 per cent to end the day at €2.88.
