DUBLIN REPORT: Iseq:2,620.12 (-160.75) Settlement Date:August 27th

THE DUBLIN market tumbled by close to 6 per cent yesterday driven by a slide in the value of CRH.

The buildings materials group, which is the largest constituent on the Iseq, tumbled by 16.6 per cent as the market reacted badly to interim results from the building group which showed that pre-tax profits were down 77 per cent on the same period a year earlier.

The company warned of lower earnings for the remainder of the year.

The stock, which had already been trading around its book value of late, shed €2.32, to close at €11.70.

Analysts in Dublin said the interim results took the market by surprise, particularly in light of the trading update in July, while Citi cut its rating to hold.

Worries about the share price centred around concerns over the slow pace of recovery of the US market, which represents about half of CRH’s activities.

The results from CRH, which is one of the largest manufacturers and distributors of building materials in the world, also affected European markets, dragging on the construction sector, which was not helped by US data yesterday showing a record drop in existing homes sales in July.

Construction-related stocks on the Iseq were also hit. Kingspantumbled by 6 per cent, or 33 cent, to finish at €5.04, contrasting with the 6 per cent gain sustained on Monday on the back of its interim results. Grafton lost 13 cents, or 5 per cent, to €2.50.

Elsewhere, Aer Linguslost 4.3 per cent, despite results for the first half of the year showing pretax losses had fallen 80 per cent. The share price finished at 0.89.

Few stocks ended the day in positive territory yesterday, though food stocks held their own. Kerry Groupadded just under 1 per cent to close at €24.75 while Glanbia, which posts interim results today, finished the day flat at €3.38.