CRH biggest loser as market fails to sustain rally

Iseq:2,558.42 (–32.45) Settlement date:October 14th

EUROPEAN STOCKS yesterday reversed a four-day rally, as markets remained tense ahead of a key vote in Slovakia on expanding the euro zone bailout fund.

The Iseq saw steeper losses than most of its European counterparts, closing down 1.2 per cent. The FTSE in London was down fractionally, closing 0.06 per cent lower, the Paris Cac shed a ¼ per cent, while the Frankfurt Dax managed to add 0.4 per cent.

Index heavyweight CRH was one of the biggest losers in Dublin, reversing Monday’s strong gains, to close down 4.2 per cent. Other construction-related stocks followed suit, with Grafton closing off 2 per cent at €2.69 and Kingspan down 1 per cent at €6.12.

Bank of Ireland was one of the most actively traded stocks, gaining 3.4 per cent to finish at €0.10, after the bank announced it had raised €1.1 billion of secured debt, due for repayment in early 2015.

The news that Moody’s had cut the deposit rating on its UK operations had little impact on its share price in Dublin which was in positive territory for most of the day.

News that Ladbroke’s had ended talks with Sportsbet about a potential acquisition was perceived as a positive development for rivals such as Paddy Power, though the Irish betting company shed ½ per cent yesterday to finish at €38.53.

On the bond markets, the yield on Irish 10-year bonds jumped by the most since early July, hitting more than 8.5 per cent at one point, after Canadian credit-rating company DBRS said Ireland’s recovery prospects could be hit by slower growth in the US and Europe.

DBRS is one of four rating agencies considered by the European Central Bank in deciding which bonds can be used as collateral in its lending operations. The yields on Italian and Portuguese 10-year bonds also increased yesterday reflecting tensions ahead of the Slovak vote.