Disappointing CRH results helps weigh index down

DUBLIN REPORT: Iseq:3,147.51 (-11.32) Settlement date:March 29th

WHILE EUROPEAN stock markets closed pretty much flat yesterday, Dublin’s Iseq underperformed, dipping by 11 points to finish at 3,148, weighed down by a 2.2 per cent fall by CRH, the largest constituent on the index.

CRH’s disappointing performance was in line with the sector across Europe, where construction stocks were some of the weakest performers. CRH’s slide was also viewed by some analysts as a correction on the stock’s strong gains in recent days. Other construction-related stocks were lower. Kingspan shed just under 2 per cent to €6.30, while building materials group Grafton fell by 2.2 per cent to €3.06.

AIB and Bank of Ireland continued to gain ground yesterday, though on below-average volumes. Despite adding 6.2 per cent and 4.5 per cent respectively, trading on the banking stocks was erratic throughout the day. Nonetheless the gains posted by both stocks pointed to an expectation among investors that Nama valuations would provide some sort of resolution and direction to the stocks, according to one analyst.

Independent News & Media was one of the most traded stocks, with multiples of the stock’s average volumes traded, after the media group announced its advertising revenue stabilised in the second half of 2009 and some markets already showed year-on-year operating profit growth in 2010.

The share price gained 14 per cent to close at 10. 5 cents.

C&C attracted significant interest, closing up nearly 4 per cent, after fears that British chancellor Alastair Darling would harmonise cider and beer duty in the British budget proved unfounded.

Food group Glanbia also put in a strong performance, adding almost 6 per cent, or 16 cents, to close at €2.95, with the company’s plan to sell its Irish division to the Glanbia co-op continuing to impress investors.