CRH retreats on concerns over building sector in US

DUBLIN REPORT: ISEQ: 3,278.39 (-15.53) Settlement date: October 23rdTHE IRISH stock market finished in negative territory, but only just, with its performance mirroring that of the major stock markets across Europe.

After publication of a US housebuilder index showing weakened sentiment in the industry, building materials group CRH, the largest component stock on the index, fell 1.9 per cent in trading, closing at €19.40.

There was strong interest in food group Greencore, which climbed 2 per cent to a closing price of €1.55 on high volumes.

Ferry operators Irish Continental Group was also among the busy stocks, but it declined 2.6 per cent to €12.75, while Kerry Group also lost ground, falling 1.1 per cent to finish at €19.63.

Dragon Oil continued its ascent, finishing up almost 1 per cent at €4.65, although a note by analysts NCB Stockbrokers forecast some profit-taking by investors as a bid by ENOC for the remaining 48 per cent of Dragon Oil drags on.

Independent News & Media, which has issued a notice for a bondholder meeting set for November 10th, saw its share price erode again yesterday. It fell 10 per cent to 21 cent, down 2 cent on the previous day. Smurfit Kappa rose 1.8 per cent to €6.30 after its sector peer in the container board and corrugated box industry, PCA, reported improving volume trends as global economic conditions recover.

Bank of Ireland was the best performing financial stock, adding 5.65 per cent to finish at €2.78. AIB ended the day broadly flat at €2.70, while it was a more lacklustre day for Irish Life and Permanent, which slipped 2.2 per cent to €5.62.

Elsewhere, Readymix’s share price declined on tiny volumes after it announced operating losses of €1.5 million for the third quarter, compared to €5.5 million losses in the same period of 2008.