Iseq rises as Kenmare Resources hits high note

Iseq:2,907.60 (+0.18) Settlement date:June 27th

A STRONG performance by Kenmare Resources was thrown into sharp relief yesterday against the backdrop of a lacklustre market.

The mining stock was more than 7 per cent ahead at 53.5p on the London Stock Exchange, where it has its primary listing. The stock has been enjoying a decent run of late, as prices of two minerals it produces – ilmenite and zircon – continue to rise, and investors anticipate estimate upgrades.

On the flipside, Petroneft Resource tumbled more than 23 per cent after issuing a disappointing operations update. It closed 10 cent down at 33 cent.

Elsewhere, building materials giant CRH was caught in a “tug of war” of conflicting data, a broker said. While the US Architecture Billing Index, a forward-looking indicator of non-residential activity, dropped in May, architectural glass business Apogee Enterprises reported better-than-expected first quarter results after US markets closed on Tuesday night.

US housebuilding stocks traded better yesterday on this data. However, the net impact for CRH was a fall of 1 per cent, or 18.5 cent, to €14.53, though it traded as high as €14.80 earlier in the session.

There was little enough activity in Smurfit Kappa, with the stock nudging ahead by just two cent to just under €7.89. However, the paper and packaging group’s UK peer DS Smith is due to report numbers today, and brokers expect this to provide Smurfit Kappa with more direction.

Although speculation about a potential takeover bid sent Greencore higher on Tuesday, the stock was weaker yesterday. The convenience food manufacturer closed lower at €1.025.

United Drug traded on decent volume, however, it failed to hold on to its gains and was unchanged at €2.32.