Iseq down almost 1% as strong run by CRH ends

DUBLIN REPORT: Iseq:2,636.35 (-25.04) Settlement date:July 14th

BUILDING MATERIALS behemoth CRHwas once again the busiest stock on the Iseq index of Irish shares yesterday, as expectations continued that a large buy order for the stock on foot of its entry into the Dow Jones Dividend 30 Index would boost the stock.

But investors who tried to get in ahead of the buy order in anticipation of a share price rise may have been disappointed by the stock’s performance yesterday. It closed at €16.40, down 10 cent on the day before, ending what one Dublin-based dealer said was a surprisingly good run for the stock since the release of its negative trading statement on Tuesday.

Davy Stockbrokers reduced its full-year earnings forecasts for the stock by 23 per cent yesterday.

Overall, the Iseq index finished down almost 1 per cent on another unspectacular day for stock markets across Europe, as a rally in New York on Wednesday night failed to significantly lift the mood this side of the Atlantic.

Unlike Dublin, however, the London, Paris and Frankfurt stock markets all managed to finish in positive territory. Volumes in Dublin remained on the quiet side. After losing ground on Wednesday, paper and packaging group Smurfit Kappaemerged from Thursday's trading session with gains of 5.6 per cent, closing at €3.38.

There was also a reversal of fortune for Bank of Ireland, which saw the previous day's gains wiped out in a 7.3 per cent fall to €1.34. AIBfell 5.2 per cent to €1.36, but Irish Life & Permanentcontained its loss to 3.8 per cent, closing at €2.78.

Drinks group C&Cenjoyed a 2 per cent rise one day after its weather-boosted trading statement, as Goodbody Stockbrokers upgraded its earnings forecast for the stock. It closed at €2.34.

Elsewhere, there were gains for two housing-related stocks, Kingspanand Grafton.