Iseq: Strong performances from leading stocks CRH and Ryanair helped the Dublin market outperform its European peers today. The Iseq index of Irish shares ended the day 3.12 per cent up at 2,748.3.
In Europe, the Stoxx 600, which measures leading stocks in 18 different markets, added 0.6 per cent to close at 267.62, its highest close in six months.
London’s benchmark FTSE 100 was up just over 0.5 per cent at 5757.86.
A key driver in Dublin was an 8 per cent gain by its biggest stock, building materials giant, CRH, which added 8.4 per cent to close at €12.90.
The stock has fallen dramatically since early in the summer, but dealers said the renewed interest was simply based on investors’ belief that it had fallen enough. They pointed out recent quotes of around the €11.90 mark were well shy of its net asset value, which is estimated at €13.50, and added that it generates strong cash flow.
CRH’s Iseq weighting is currently around the 24 per cent mark, and its rise helped boost the overall index.
Ryanair gained 2.65 per cent to close at €4.19 on the back of good news from its sector, particularly in the US.
Dealers pointed out airlines such as Ryanair are well positioned to benefit from any revenue growth as in many cases they have already cut costs to cope with the impact of the recession.
Similarly, Aer Lingus added 3.64 per cent to close at €1.14.
Exploration group Tullow dipped over 4 per cent to €13.771, earlier in the day the company reported it had not found oil or gas in one of the high-risk exploration wells it has been drilling off Ghana in west Africa.