European shares rose on Monday, as the boom in defence stocks continued amid reports that European troops may set foot on Ukrainian soil. Drugmaker Novo Nordisk was a big winner after new data favoured its weight-loss drug Wegovy over rival therapies.
DUBLIN
The Iseq All-Share index ended the session up 0.38 per cent to 11,323.84.
Food group, Glanbia topped the index on the day, rising 1.41 per cent to €14.42. Irish Ferries brand owner Irish Continental Group also performed well, rising 1.39 per cent.
RM Block
It was a good day for the home builders, with Cairn Homes – up 0.23 per cent – Glenveagh Properties – rising 0.72 per cent – and Irish Residential Properties REIT plc – adding 0.73 per cent – all making gains.
AIB and Bank of Ireland were strong in trading on Monday, adding 1.37 per cent and 1.07 per cent respectively. Permanent TSB fell 2.58 per cent, making it a mixed day for the banks.
Titanium minerals miner Kenmare Resources weighed down the index, falling 3.72 per cent to €3.62, but with low trading volumes.
LONDON
The blue-chip FTSE 100 closed 0.1 per cent higher, following its biggest weekly decline in almost five months on Friday.
Defence stocks advanced after Norway said it had chosen Britain as its strategic partner for the acquisition of new frigates, in a deal worth some £10 billion (€13.51 billion). BAE Systems rose 1.9 per cent, Babcock advanced 2.1 per cent, while Rolls-Royce gained 2.8 per cent.
Precious metal mining stocks gained 3.3 per cent, tracking higher gold prices. Hochschild Mining rose 6.7 per cent, Fresnillo and Endeavour Mining added 2.1 per cent and 3.5 per cent, respectively.
The FTSE 100 hit a record high in August, as global shares rallied on rising bets on a US rate cut in September, but at the end of the month registered four straight sessions of declines.
Banking stocks, which fell on Friday after a think-tank recommended a new tax on lenders as a possible way for chancellor of the exchequer Rachel Reeves to raise revenue, rebounded slightly as NatWest was up 1.2 per cent and Barclays rose 1.9 per cent.
On the flip side, utility stocks fell, with SSE down 3.1 per cent, while National Grid and United Utilities fell 2.1 per cent and 2.5 per cent, respectively.
IT software developer Kainos jumped 22.5 per cent, to top the mid-cap index, on an upbeat annual outlook, while Domino’s Pizza Group rose 8.8 per cent on reaffirming its annual earnings forecast and launching a new share buyback.
EUROPE
The pan-European STOXX 600 closed up 0.17 per cent, with gains led by the aerospace and defence index, which surged 2.1 per cent to hover near a record high.
Defence giants, Rolls-Royce Holdings, Rheinmetall and Hensoldt advanced between 2.8 per cent and 4.5 per cent.
Gains followed a report that European Commission President Ursula von der Leyen said Europe was preparing “pretty precise plans” to send troops to Ukraine as part of post-conflict security guarantees.
Danish drugmaker Novo Nordisk, the fourth-largest healthcare company on the Stoxx index, rose 1.8 per cent after the company said Wegovy cut the risk of heart attack, stroke or death by 57 per cent versus Eli Lilly’s rival medicines Mounjaro and Zepbound in a real-world comparison.
The stock bolstered the healthcare index, rising 0.27 per cent. Denmark’s main stock index gained 1.1 per cent, also aided by Novo’s domestic peer Zealand Pharma that ended 3.5 per cent higher.
Overall gains were limited by a jump in long-dated euro zone bond yields on persistent worries about Government debt levels around the world.
Orsted gained 3.5 per cent after Norway’s Equinor pledged to support its planned $9.4 billion rights issue as the Danish offshore wind developer seeks to bolster its balance sheet as both companies navigate regulatory hurdles in the US offshore wind market.
Utilities, often traded as a bond proxy, fell 0.9 per cent to lead sectoral losses on Stoxx 600. -Additional reporting, Reuters, PA.
