Iseq finishes flat despite interest in food groups

Iseq: 2,977.93 (+2.94)

THE IRISH market finished flat yesterday after what dealers described as an “up and down day” during which most of the trade was in leading stocks, but investors showed some interest in defensive plays such as the food sector.

There was continuing sell pressure on building materials giant CRH, which accounts for one-third of the overall index, and it shed another 1.3 per cent to close at €16.74. Dealers said that its lack of popularity is down to general weakness in its sector. It is due to be admitted to the leading Dow Jones Stoxx 50 on September 21st.

Figures from Ryanair, showing passenger numbers holding up well, boosted the stock, which rose 2.61 per cent to close at €3.14.

Elsewhere, there was buyer interest in food stocks Kerry and Glanbia, which both gained. Brokers suggested that investors regard these shares as defensive plays. Glanbia added 1.44 per cent to close at €2.82, while Kerry gained 0.76 per cent to end the day at €18.46.

The banks’ good performances ran out of steam this week as debate over the Government’s rescue mechanism, Nama, intensified. The pattern more or less continued yesterday. AIB shed almost 3 per cent to close at €2.33.

Buyers were lukewarm about the others. Bank of Ireland clawed back two cent from losses earlier this week to close at €2.30, a gain of less than 1 per cent.

While there was plenty of activity in the stock during the day, Irish Life Permanent ended unchanged at €4.90.

Property investment minnow Blackrock International Land, produced results yesterday showing that net assets were down €1.8 million. The stock gained 5.6 per cent to close at 7.5 cent.

Around 300,000 of its shares changed hands. However, given the share’s price, dealers described the value of the advance as “absolutely tiny”.

Settlement date: September 8th