Dublin's Iseq share index rose at a faster pace than the UK and broader European markets as Ryanair confounded analysts by reporting a solid set of quarterly figures and stuck to its full-year earnings guidance.
Ryanair, which makes up 17 per cent of the Iseq, rose as much as 7.2 per cent and was trading 6.1 per cent higher at 9.15am at €11.57. The Iseq added 0.9 per cent, while the FTSE 100 edged 0.1 per cent higher and the Stoxx 600, a gauge of the wider European market, rose 0.4 per cent.
The Irish-based carrier reiterated its full-year net profit target of €1.375 billion to €1.425 billion, even as rivals including Aer Lingus owner IAG, EasyJet and Lufthansa have issued downbeat outlooks following the Brexit referendum and a number of terrorism attacks in Europe recently.
"Overall, this was a better than expected performance and gives confidence that Ryanair can keep delivering in difficult times," said Mark Simpson, an analyst with Goodbody Stockbrokers. "With regards Brexit, the company is expecting to be cutting frequencies out of Stansted [in London] over the coming winter season and focusing growth more on its ex-UK network."
European stocks
Meanwhile, William Hill jumped 9.6 per cent in London on news that 888 Holdings and The Rank Group are considering a joint takeover offer for the bookmaker. Ericsson AB increased 5.3 per cent in Stockholm as its chief executive officer stepped down after more than six years at the helm of the Swedish telephone-equipment maker.
European stocks are hovering around a one-month high after they recovered most of their losses since the UK vote to leave the EU. The Stoxx 600’s rebound, however, has stalled in recent sessions amid mixed reports on the services and manufacturing industries and corporate earnings. After pumping more money into the region’s equities than any time in history, global fund managers have become underweight in the shares for the first time in three years, even with valuations that look appealing versus government debt and US stocks.
(Additional reporting, Bloomberg.)
