CRH falls on light volumes as market fails to sustain rally

DUBLIN REPORT: Iseq: 2,938.78 (-51.82) Settlement Date: June 3rdTHE ISEQ failed to sustain its two-day rally yesterday, finishing 1.6 per cent lower on a mixed day for European markets.

Overall, volumes were below average in line with the European trend as the markets geared up for a public holiday on Monday in Britain and the US.

In Dublin, Ryanair and Bank of Ireland saw the most activity in terms of volumes, while elsewhere on the index it was relatively quiet.

The ISEQ’s fall was attributable to a 4 per cent slide by construction giant CRH, the largest constituent on the ISEQ. The fall comes as chief executive Myles Lee said the company was considering a number of possible acquisitions, and despite positive US aggregate volume figures. However, analysts pointed out the slide came on the back of light volumes.

Banks had a mixed day. AIB finished the session pretty much flat at just under 71 cent.

Bank of Ireland saw decent two-way activity, but lost 4.5 per cent to close at 74 cent. Irish Life and Permanent was the worst performer among Irish financials, shedding just over 5 per cent or 11 cent, to finish at €1.93, with analysts suggesting that reports of rising mortgage arrears may be affecting investor sentiment.

Ryanair was one of the most traded stocks yesterday ahead of the airline’s full-year results next Tuesday. The stock advanced 1.2 per cent or 4 cent to end the session at €3.29.

Pharmaceutical company Elan also performed well, consolidating the gains of the previous session to add 3.3 per cent on the back of an upbeat assessment of the group’s prospects at the company’s agm on Thursday.

Drinks company C&C shed almost 4 per cent to end the session at €3.21.

Independent News and Media added 4 per cent to 12 cent ahead of the company’s agm next Wednesday.