Iseq keeps pace with Europe to close up as CRH leads way

DUBLIN REPORT: Iseq: 2,740.19 (+39.26) Settlement date: July 23rd

EUROPEAN STOCKS advanced for the sixth consecutive trading day yesterday and the Iseq index was swept upwards in line with its counterparts, gaining 1.4 per cent.

A strong performance by the index bellwether CRH was the main factor behind this uptick. Better-than-expected housing starts data out in the US on Friday provided a boost to the cement giant, which traded up 2.2 per cent to €16.68.

CRH’s gain helped to offset the effect of the Zoe Group debacle – a group of six Liam Carroll companies have sought court protection after ACCBank demanded repayment of loans totalling €131 million – which weighed heavily on banking stocks.

AIB, which is owed €489 million by the Zoe Group, sank as low as €1.57 during the morning session, but recovered after lunch to close up 2 cent at €1.73.

Bank of Ireland, owed €113 million, slipped by over one cent to €1.65.

While a number of other companies connected with Mr Carroll suffered on the day, Independent News & Media proved to be by far the biggest loser.

The beleaguered stock fell almost 16 per cent to just over 21 cent in advance of its deadline this Friday to secure an agreement with bondholders.

Uncertainty over the short-term fare outlook and fuel price volatility have been weighing on Ryanair, but the low-fares airline put in a solid performance yesterday, gaining more than 2 per cent to close at €3.27.

Although the appointment of Christoph Mueller as the new chief executive of Aer Lingus on Friday was positively received, the former State carrier closed flat at 55 cent.

Reports that Elan, which reports second quarter figures today, may invest in a biologics operation in Ireland, saw the stock jump almost 50 cent to €5.68.