Iseq: 2,886.51 (+17.68) Settlement date: July 26thEQUITY MARKETS enjoyed a buoyant afternoon after it became clear that European leaders had avoided – or at least delayed – contagion in the euro zone by agreeing on a second bailout for Greece.
The Iseq market followed the pattern across Europe by dipping earlier in the day, before recovering to end the session on a high note, up 0.6 per cent on the previous day.
As financial stocks drove gains across Europe, more than 50 million shares traded in Bank of Ireland, which rose 2 per cent on the Iseq to 10 cents. But it was the less active AIB that was the highest percentage climber, rising 8 per cent to 12 cents.
Cider manufacturer CC closed relatively flat at €3.50 on a day when British drinks group Mitchells Butler gave details of poor trading during the unseasonable June weather. CC is also likely to have suffered as a result of the cold weather, analysts noted.
Bookmaker Paddy Power rose 3 per cent to €34.37 after online casino operator 888 Holdings published details of a strong second quarter performance, supporting the views of analysts who believe the Irish company’s August interim results will also exhibit decent momentum.
Dragon Oil rose 3 per cent to €6.45, up 19 cents, as the Turkmenistan-focused explorer increased its production by a quarter in the first half of the year. In a trading update, the company said it had produced an average of 58,000 barrels of oil a day over the six months to the end of June.
Dragon has three operational rigs and expects to drill and complete 12 wells this year.
As markets calmed in the afternoon, the bonds of the peripheral states rose in tandem with the optimistic mood. The yield on 10-year Irish debt fell 70 basis points to 12.35 per cent.
