DUBLIN REPORT: Iseq:2,682.00 (-21.16) Settlement date:May 11th
IN SOMETHING of a reversal of fortune compared to recent market trends, yesterday was a buoyant session for the banking stocks but a negative one for the Iseq's shining star CRH.
Cement-maker CRH, the largest component of the Iseq and major beneficiary of the Obama fiscal stimulus plan, issued an interim statement indicating that poor weather conditions during the winter months and the deteriorating economic environment had dragged down its performance. The stock’s share price finished down 7 per cent at €18.40.
In the financial sector, investors are waiting for the results of the US government’s bank stress tests.
But despite concerns that Bank of America requires around $34 billion in new capital, it was a solid day for banking stocks internationally, while at home, “nationalisation as a theme seems to be less on the table”, according to one Dublin-based dealer.
With the aid of trading volumes that were well above average, Bank of Irelandfinished up 26 per cent at €1.18 and AIBclosed up almost 15 per cent at €1.20.
Elsewhere, United Drugpublished interim results that lagged slightly behind some analysts' forecasts and it fell 6.8 per cent to €2.05.
In the food sector, US giant Kraft issued first-quarter numbers suggesting a consumer shift towards frozen ready meals and deli fresh meats for home snacking, which NCB Stockbrokers said could be a positive trend for both Kerryand Glanbia. However, both stocks slipped in trading yesterday.
Some 3.5 million shares traded in Independent News & Media, which slipped 1 cent to 26 cent, while it was a strong day for Ryanair, on the back of a positive trading statement from Easyjet, and it closed up 6 per cent at €3.60. Paddy Poweralso did well, climbing 5 per cent to €15.58.
