Iseq driven down by CRH fall

The Dublin market tumbled by more than 5 per cent today driven by massive falls by CRH.

The buildings materials group which is the largest constituent on the Iseq tumbled by 16.6 per cent, as the market reacted badly to interim results from the building group.

Pre-tax profits were down 77 per cent on the same period a year earlier and the company warned of lower earnings for the remainder of the year.

The stock, which had already been trading around its book value of late, shed €2.32, to close at €11.70.

Analysts in Dublin said the interim results took the market by surprise, particularly in light of the trading update in July, while Citi cut its rating to hold.

Worries about the shareprice centred around concerns over the slow pace of recovery of the US market, which represents about half of CRH's activities.

The results from CRH, which is one of the largest maker and distributor of building materials in the world, also impacted on European markets, dragging down the construction sector. The sector was not helped by data from the US

today which showed a record drop in existing homes sales in July.

Overall European stock markets fell to a one month low on the back of steep falls by the construction sector.

In Dublin, construction-related stocks were hit. Kingspan tumbled by 6 per cent of 33 cent to finish at €5.04, contrasting with the 6 per cent gain sustained on Monday on the back of its interim results.

Grafton lost 13 cent of 5 per cent to €2.50.

Aer Lingus lost 4.3 per cent, despite results for the first half of the year which showed that pre-tax losses had contracted by 80 per cent. The share price finished at €0.89.

Few stocks ended the day in positive territory on the Iseq, though food stocks managed to hold their own. Kerry Group added just under 1 per cent to close at €24.75 while Glanbia, which posts interim results today, finished the day flat at €3.38.