Ryanair drags index down as Opec reports low output

Iseq:2,976.29 (-28.88) Settlement date:May 6th

THE DUBLIN market made a sluggish return to trading after the bank holiday with the Iseq index sliding 1 per cent yesterday in contrast to a positive performance on the FTSE in London.

The Iseq’s slippage also exceeded that on the French and German indices, with major stock Ryanair among those that dragged it down. The airline fell 2.6 per cent to €3.40, as figures from Opec showed that oil output fell to a 23-month low in April, which is likely to keep crude prices high in the months ahead. Some 3.5 million shares traded in Ryanair on the Dublin market.

Building materials group CRH, which holds its agm and publishes an interim management statement today, also contributed to the Iseq’s decline, losing 0.7 per cent to €16.64. Its construction peer Geberit announced first-quarter earnings that were ahead of expectations, but cautioned that the North America residential market, where CRH is active, would remain challenging.

Pharmaceutical group Elan climbed 1.8 per cent to €5.47 – helping to limit some of the losses.

Food group Greencore was flat at €1.10. There was further speculation last weekend that it is considering a bid for British food group Uniq. Analysts at stockbroking firm Bloxham advised Greencore to exercise caution: “The company should take its time before making important strategic steps.”

Data from NCB Stockbrokers showing an expansion in Ireland’s manufacturing sector in April was interpreted as good news for ferry operator Irish Continental. It rose 0.6 per cent to €17.40.

Among the financial stocks, Bank of Ireland was the heaviest faller, dropping back around 3 cent to a closing price of 25 cent.

This was the first session of the Dublin market since the Government revised down Ireland’s economic growth projections for 2011 and 2012.