CRH's worst performance in two months as it sheds 4%

DUBLIN REPORT: Iseq:2,869.84 (–46.24) Settlement date:January 8th

THE WORST performance in almost two months from its biggest stock dragged down the Dublin market and left it trailing its European peers yesterday.

Building materials giant, CRH, the Irish market’s biggest company and one which accounts for almost 30 per cent of the Iseq index, shed 4 per cent to €14.57.

This was despite the fact that it released a statement saying that in 2010 it spent €536 million on 28 acquisitions that it expects will boost full-year revenues by €800 million.

Dealers blamed poor sentiment towards its sector in Europe for the performance. Construction-related stocks fell across the continent and the industry was one of the worst performing components of the Dow Jones Stoxx 600, the benchmark index that tracks leading stocks in 18 western European markets.

Investors nervousness about the sector reflected their renewed fears about Europe’s debt crisis, which mean most markets across the continent performed poorly.

Grafton, another construction-focused stock dipped 1 per cent to close at €3.32.

Elan jumped 9.2 per cent to close at €4.73, one trader noted that its name appeared on at least one list of stocks to watch this year in the US, where most of the business in the pharmaceutical developer is done.

Oil explorer Petroneft fell 9.8 per cent to 78 cent after reporting that production from one of its wells in Siberia was constrained by structural problems with the well itself. The company had already flagged the risk of the problem arising and is beginning a programme of work to deal with it.

Mortgage lender and life assurer, Irish Life and Permanent was weak, dropping 2.3 per cent to 99 cent.

Packaging group, Smurfit Kappa, enjoyed a good day, rising 3.1 per cent to close at €7.67.