CRH gains on day of mixed fortunes for banks

I seq:3,005.39 (+40.43) Settlement Date:February 23rd

A STRONG performance by CRH ensured that the Irish market outperformed its European peers to finish up almost 1½ per cent yesterday. The construction giant benefited from positive results from peer company Lafarge.

CRH, the largest constituent on the index, ticked up 63 cent, pushing its share price to the €17.00 level.

Elsewhere, banks saw some activity as the market absorbed announcements from all three of the banking groups, although none of the stocks saw significant movements.

While Bank of Ireland’s announcement that it would resume paying certain dividends took traders by surprise, news that deposits had stabilised gave some comfort, and the stock closed up 1.3 per cent at €0.38. Conversely, Irish Life and Permanent lost more than 4 per cent to close at €0.90 after it said it was increasing its provisions for bad debts. AIB’s announcement that its disposal of its Polish interests had moved a step further in terms of regulatory approval was less significant and was issued after markets closed. Its shares rose by 2.4 per cent to €0.282.

Elsewhere, mining stocks performed well with Providence Resources adding 26 cent to €3.36 after announcing details of a share placing during the week. Petroceltic was steady at €0.155.

Greencore climbed by 1.2 per cent to €1.20 following reports that the company was in discussion with a private equity group about mounting a revised bid for Northern Foods.

United Drug continued to attract investor attention yesterday following its interim management statement on Thursday, with the healthcare company rising 4 per cent to €2.28.

DCC also advanced on the day, adding 17 cent to finish at €22.55, following the announcement of a UK acquisition on Thursday.