DUBLIN REPORT: Iseq: 2,916.08 (+30.98) Settlement date:January 7th
THERE WAS a back-to-school vibe on equity markets yesterday as trading volumes on the Iseq index of Irish shares were “back to normal” for most stocks.
Investors were playing catch-up with the parts of the Europe that were open for trading on the bank holiday, said one Dublin dealer.
However, the Iseq gave up early morning gains, with the descent driven primarily by weakness in its dominant constituent, building materials group CRH. The stock declined 2 per cent in sympathy with US construction peers Vulcan Materials and Martin Marietta, which were downgraded by analysts at UBS Bank.
CRH’s 32 cent drop to €15.18 weighed on the overall index, which consequently ended the day down more than 1 per cent.
Bank of Ireland was the weakest of the financial stocks, falling almost 7 per cent to 34 cent, in a sector of the market that continues to be “random at times”, according to one dealer.
Ryanair climbed 2.5 per cent to €3.86 in line with a strong airline sector. After the markets closed, the UK Office of Fair Trading announced it believed it had not missed a deadline to investigate its stake in Aer Lingus.
Elsewhere, Greencore rallied after the British Takeover Panel told Boparan, the company which has expressed an interest in bidding for Northern Foods, that it must make a firm intention for the company by January 21st.
Northern’s share price has been trading at a premium above the level justified by the Greencore merger. However, Greencore’s 5 per cent climb yesterday and Northern Foods’ 2 per cent drop in London reduced the risk that the merger might not go ahead.
Insurance company FBD rose 5 per cent to €6.51 as investors ignored the financial drain of large weather-related payouts and looked ahead to the higher premiums FBD will charge as a result.
