CRH advances despite drop in US new home sales

Iseq:2,813.28 (+5.42) Settlement date:March 28th

A MACRO-ECONOMIC rollercoaster hurtled Irish stocks up and plunged them down on several occasions yesterday, although volumes were typically modest. The Iseq managed to finish slightly up compared to the previous day.

A pensive opening to the morning’s trade was relieved by expectations that China’s inflation rate would be tamer this year, only to be followed by reports at lunchtime that the expansion of the European Financial Stability Facility would not be decided until June.

This prompted a sell-off, as did fears that Portugal’s budget vote may trigger a bailout.

However, markets began to climb again after assurances from German chancellor Angela Merkel that the European Stability Mechanism would help resolve the European debt crisis and that European governments would step in if necessary to bolster faltering banks.

The macro-economic rise and fall continued when news circulated of the Jerusalem bombing and further unrest in Libya, which pushed up oil prices.

The lift in oil prices weighed on airline stocks, including Ryanair, which went to €3.18 before finishing at €3.21, down ½ per cent.

Building materials group CRH performed better on the day, climbing 1.3 per cent to €15.68, a rise of 20 cents. This was despite an unexpected drop in US new home sales that should have been negative for the stock.

CRH shook this data off and rose in the afternoon.

There was no stock-related news on industrial holdings group DCC, but it was weak on low volumes and finished down 2 per cent at €22.14.

Meanwhile, Ireland’s 10-year bond yield stayed above 10 per cent during the day. Banking stocks were weak, with AIB shedding another cent to close at 18 cents.