CRH reaps benefits of strengthening US dollar

MARKET REPORT:THE DOLLAR's strengthening against the euro and the fall in the price of oil both lifted the Iseq index of Irish shares yesterday.

The Dublin market finished up 3.2 per cent as its second-biggest stock, CRH, reaped the benefits of the dollar's fortunes, while Ryanair, another major stock, rose as a result of the more favourable oil price.

Some 50 per cent of building materials group CRH's earnings are in dollars and the group's share price surged 8.3 per cent to €18.40, up €1.41 on the previous day's closing price, although one dealer commented that this might be "over-compensating a little".

Ryanair climbed almost 11 per cent to €10.81, up 27 cent, as crude oil prices retreated further from their spike.

The banks, too, had a good day, with Anglo Irish Bank up more than 4 per cent at €6.36, a rise of 25 cent, and AIB up 3.3 per cent at €8.83, up 28 cent.

Meanwhile, Bank of Ireland added 10 cent to finish at €6.06, up 1.7 per cent.

Food group IAWS digested a 10 per cent increase in sales at Tim Hortons, the doughnut seller with which it has a joint venture and which is expanding its number of kiosks in the UK and Ireland. IAWS's share price climbed 40 cent, a gain of 2.7 per cent, to €15.30.

Kerry also made gains, adding 28 cent to close at €18.88, up 1.5 per cent.

Kingspan shrugged off weak new construction orders for warehouses and offices in the UK, gaining 3 per cent, closing up 20 cent higher at €7.00.

Paper and packaging group Smurfit Kappa rose 5 per cent ahead of the release of its second-quarter results on Monday, finishing up 22 cent at €4.51.

United Drug, Tullow Oil, McInerney, Glanbia, CC, Elan and Paddy Power were among the fallers.