CRH leads as Iseq advances in line with global trend

Iseq: 2,756.41 (+50.17)

WHILE MOST of the action yesterday centred around the bond markets, it was a bullish day for equities, as investors responded positively to the announcement by the Federal Reserve of a second round of quantitative easing.

The Dublin market mirrored the global trend, ending the session comfortably in the black, up 50 points, though it did fall back slightly from earlier highs.

CRH was the primary driver of gains in Dublin, with the construction giant, the largest constituent of the index, soaring by 4.5 per cent, or 60 cent, to close at €13.65.

This was mainly on the back of positive third-quarter results from peer companies HeidelbergCement, Geberit and PutleGroup, which lifted construction-related stocks across the globe.

An interim trading update from another Iseq heavyweight, Kerry Group, pleased investors, with the company discounting concerns about rising input costs and currency changes to reaffirm its conviction that 2010 results will be within guidance. The food and ingredients group climbed 1.2 per cent or 33 cent to €26.70.

Kerry’s statement that demand conditions in international primary dairy markets had remained firm since its half-year results helped boost fellow food company Glanbia, which jumped by 4.3 per cent to €3.60.

The bullish performance of most stocks on the index did not extend to the financials, however, with the banks still struggling against the background of soaring Irish bond yields. Bank of Ireland fell below 50 cents, closing down 1.4 per cent at 48.8 cents.

The announcement that AIB had completed the sale of its 22 per cent stake in MT had no impact on the stock, according to traders, who said the Government’s holding in the bank was still the key issue for investors.

Irish Life Permanent also lost ground, down 2.8 per cent to €1.31.

Settlement Date: November 9th