Strong CRH performance pushes Iseq up in thin trading

DUBLIN REPORT: Iseq:2,875.32 (+20.93) Settlement date:December 15th

THE DUBLIN market underperformed its European peers yesterday despite a strong performance by CRH, the largest single stock on the exchange. The boost to the company’s share price came on the back of a statement from US president Barack Obama that he would invest heavily in highway and bridge construction, aimed at boosting economic activity.

News from Poland that authorities there had fined the company €25.6 million for involvement in anti-competitive practices did not appear to hamper the CRHstock, which closed at €17.92, up 3.46 per cent. Just about a million shares changed hands in Dublin.

Another stock that did well was Smurfit Kappa, on the back of encouraging price news from the US. It finished the day up 3.45 per cent at €6.

Any expectation that Wednesday's Budget might create increased confidence in Ireland plc, thus boosting bank stocks, failed to materialise. AIBdropped 2.6 per cent to €1.35 while Bank of Irelandfell 3.5 per cent to €1.45.

Irish Life and Permanentwas down 3.14 per cent to €3.15. However traders noted that the volumes involved were very small.

There were two Budget affects pointed to by traders, boosting one company's price while depressing another's. Paddy Powerended the day up 0.78 per cent, at €24.8. Traders said this was because additional betting taxes that it had been feared might be introduced in the Budget did not materialise.

United Drugfell 1.4 per cent to €2.11, in a reaction, traders said, to measures affecting pharmaceuticals in the Budget.

C&Cfell 2.72 per cent to €2.68 on thin volumes, for no particular reason that traders could point to. Independent News & Mediarose 2 per cent to €0.10 and Kerry Group gained 2.38 per cent to €21.5. Again the volumes were thin, a pattern traders now expect will continue into the new year.