Weaker CRH, Aer Lingus help drag Iseq down over 2%

Iseq:2,848.10 (–65.19) Settlement date:July 10th

THE IRISH market trailed behind its European peers yesterday, retreating more than 2 per cent as exchanges across the continent rallied.

CRH, the largest constituent of the Irish index, dictated the direction of the market. The cement stock plunged more than 6 per cent, over €1, to just under €16.08. The drop came after the company issued a disappointing trading update. It warned that full-year sales would be hit harder than expected due to concerns relating to fiscal deficits across euro-zone countries, combined with a softening in the pace of recovery in the US.

Aer Lingusalso found itself under pressure yesterday, after releasing its June air traffic statistics. The carrier reported that total passenger numbers in June 2010 were 941,000, a fall of 8.6 per cent from the same month a year earlier. However, its overall load factor in June rose slightly year-on-year to 82.1 per cent, an increase of 0.8 points.

The stock finished the session down almost 4 per cent at 80 cent.

Rival airline Ryanairslipped 2 cent to €3.73.

Aryztawas one of only a handful of stocks to finish the day in positive territory. The Zurich-headquartered food company gained almost 2 per cent, or 56 cent, to €31.86. This was an impressive performance given that new Swiss data revealed the price of baked goods has fallen 1.6 per cent year-on-year.

Elsewhere, the UK packaging company DS Smith announced the acquisition of French competitor Otor. Irish brokers saw this as a positive development, but it failed to boost Smurfit Kappawhich came under pressure and finished down almost 2 per cent, or 13 cent, at €6.82.

Kingspanand Graftonwere out of favour, losing more than 5 per cent and 4 per cent respectively to close at €5.94 and €3.10.