International factors dictate Iseq's poor performance

DUBLIN REPORT: Iseq: 2,917.58 (-32.73) Settlement date: March 1stTRADERS SAID international factors were the main drivers dictating market performance yesterday, especially developments in the US and Europe.

New home sales data and mortgage application numbers released in the US were lower than expected and influenced the share prices of building materials businesses.

However, CRH held up well compared to its international counterparts, losing 0.98 per cent to finish at €17.28. This compared with competitors who suffered drops of in the region of 2 per cent. Traders said the conservative nature of CRH’s balance sheet was a key benefit.

Grafton finished at €2.40, down 4 per cent, with its weak price not helped by the statement yesterday of management in UK plc, Travis Perkins, indicating that conditions remain fragile for its builders’ merchant and home improvement businesses.

Kingspan, which is due to report on Monday, saw its price close at €5.68, a drop of 3.56 per cent. Traders said the fall was a reflection of the nervousness that exists about the stock. The positive response to Tuesday’s results from Kerry Group persisted, with traders saying the market liked what it saw in terms of the group’s balance sheet, growth and restructuring process. It closed at €23.53, a rise of 0.98 per cent.

Bank prices continued to be directly affected by the wait for approval from the European Commission for the National Asset Management Agency (Nama) plan, and the transfer of troubled loans to Nama from the banks.

“There are no buyers out there,” said one trader, pointing out that the lower the stock price falls, the worse the situation becomes in terms of raising funds through a rights issue.

Bank of Ireland fell 3.14 per cent, to €1.07, while AIB fell to €0.99, a fall of 2 per cent.