Iseq: 2,967.74 (-12.80) Settlement date: May 25th:APPETITE FOR food stocks such as Glanbia remained strong yesterday, as investors favoured defensive plays in the face of ongoing euro zone debt worries.
Glanbia built on Thursday’s gains, rising another 3.5 per cent, or 16 cent, to €4.78. Fresh fruit producer Total Produce firmed up slightly to finish at 43.5 cent.
Cider manufacturer CC put in a strong performance, gaining more than 2 per cent, or eight cent, to €3.64. This jump came after UK pub and restaurant group Mitchells Butler released first-half results which brokers said reinforced an improving backdrop for CC in its core Magners market.
Elsewhere in the food and drinks sector, Kerry Group lost some of Thursday’s gains, closing 33.5 cent down at €29.57.
Paper and packaging group Smurfit Kappa advanced after confirming price increases for kraftliner containerboard. The price hike came as little surprise to the market, as it follows a similar move by peer SCA earlier in the week.
“Such increases are already factored into forecasts for Smurfit Kappa. Nonetheless, it does highlight again that there is more to go in this pricing cycle,” Goodbody Stockbrokers said yesterday.
Brokers said containerboard fundamentals remain positive in Europe, and are positive for Smurfit’s earnings momentum. By the end of yesterday’s session, the stock was more than 1 per cent ahead, or about nine cent, at €8.44.
Though there were several strong performers on the day, weak turns by two heavyweight stocks, building materials group CRH and budget airline Ryanair, meant the index closed in negative territory. CRH shed almost 2 per cent, or 29 cent, to €15.46, while Ryanair saw about three cent shaved off its share price, bringing it just below €3.55.
