Financials 'marking time' as Iseq moves up marginally

DUBLIN REPORT: Iseq: 2,902.08 (+5.95) Settlement date: February 17thMACRO RATHER than micro economic issues dictated the trajectory of the Dublin market yesterday, as global markets responded to a constant stream of data during the session from China, Europe and the US, and continuing concern about the financial state of Greece weighed on investors.

In Dublin, volumes in financials were below average, with little action in the banking stocks. According to one trader, the banking stocks were “marking time” as nervousness about globalfinancial issues weighs on investors. AIB and Bank of Ireland both lost value on the day, shedding 2.3 per cent and 1.3 per cent respectively.

Their performance was in line with financials across Europe, which were among the worst-performing sectors yesterday. Irish Life & Permanent underperformed, losing a little under 7 per cent on the day, although analysts said there was no particular reason behind the move, which may have been down to one aggressive seller. Volumes were also well-below average.

Food and beverage stocks were among the best performers yesterday. There was some aggressive buying in CC, which rose by 3.7 per cent to close at €2.76 on strong volumes. Kerry Group gained 3 per cent to €22.

Paddy Power added 55 cent, a gain of 2.3 per cent, on the back of news that it is to increase its stake in its Australian business, Sportsbet.

CRH managed to recover its losses from the previous session, picking up in the second half of the day to gain just more than ½ per cent and finish on €16.75.

Overall there was little activity in construction-related stocks. Nonetheless, Kingspan managed to add just under 1 per cent to close at €5.65, though Grafton was off a little under 1 per cent on the day at €2.46.