STOCKS on the Dublin market drifted lower yesterday in line with weaker European and US markets. Most stocks eased back in fairly quite trading while CRH became the focus of attention amid rumours that it is close to buying US concrete and stone company Tilcon for around £180 million.

While the company has refused to comment on the rumour, speculation of an imminent rights issue knocked back the share price from 608p to 592 1/2p. CRH has recently traded as high as 615p.

Brokers yesterday suggested that it could be set to announce a rights issue, possibly when it announces its half year results next month. The share is likely to remain under some pressure unless the rumour is denied.

Despite the weaker tone, Smurfit managed to move marginally ahead, ended up a penny on the day at 164p.

The banks both eased back, with AIB down 4p to 349p and Bank of Ireland off 5p at 453p.

Irish Permanent was unchanged at 400p, while Irish Life was down 2 1/2p to 241p.

In the food sector, Kerry was unchanged at 595p despite higher than expected profits in the first six months of the year. The group yesterday made a presentation to analysts which is expected to prompt them to raise their year end profit forecasts for the group. Most are expected to raise their forecasts to more than £50.5 million.

Fyffes remained at 104p, Greencore also managed to hold at 307p while Waterford Foods was also steady at 90p and Golden Vale stayed at 59p.

Among the second liners, Clondalkin was unchanged at 495p, while Crean moved up 5p to 205p.

Jurys was up 2p on the day to 274p, while Arnotts shed 5p to close at 400p.

The gilt market also lost ground, with most bond markets trading nervously ahead of the Bundesbank meeting today.

The 8 per cent bond due in the year 2006 was down 35p to £102.95 to yield 7.43 per cent.

The 8 per cent bond due in the year 2000 was down 37p to £103.55 to yield 6.85 per cent.