Iseq closes lower despite positive start to trading

Iseq: 2,543.36 (-11.73) Settlement date: November 25thTHERE WAS a positive start to trading yesterday but the Iseq overall index closed down 0.46 per cent after US economic growth for the third quarter was revised downwards.

“It showed us that the US economy wasn’t growing as quickly as people had thought,” one trader noted.

This release affected most European markets negatively although the Irish exchange performed better than its peers in London, Frankfurt and Paris.

That said, stocks on the rise were thin on the ground.

Leading the way was financial group IFG, up 2.86 per cent to €1.08. Food groups Greencore and Kerry were both up on the day by more than 1 per cent.

“There’s a flight to quality,” one trader said in relation to Kerry.

Building materials group CRH was also in positive territory, boosted by its expected move into the FTSE 100 next month, when it switches its primary listing from Dublin to London.

Ryanair was down 0.56 per cent at €3.52 but this was viewed as a good performance on a day when most leading airline stocks in Europe were hit badly.

“There’s a flight to low cost,” said one trader without a hint of irony. “There’s a view that Ryanair is going to do better than the legacy carriers but all airlines are under pressure.

“Ryanair has also come off the back of a good investor roadshow after strong interim results.”

The mild November weather was cited as the reason for the decline in DCC’s share price. The company, which has fuel distribution interests in Britain and Ireland, closed down 0.29 per cent at €17.31.

Builders merchanting and DIY group Grafton was described as having a “soft day”, down 0.63 per cent to €2.365. This follows recent downgrades on foot of a weaker-than-expected trading update.