Iseq rises as CRH rebounds ahead of interim results

Iseq:2,520.44 (+71.20) Settlement date:August 17th

AFTER A week of extreme volatility, the Irish market delivered a solid performance yesterday, rising almost 3 per cent.

Stock markets built on Thursday’s recovery as investors speculated that fears of a sharp global slowdown were overdone, and rumours surrounding French banks retreated. The imposition of a ban on short-selling by four countries also appeared to help both European and US markets.

The Iseq was bolstered by CRH, which rebounded yesterday ahead of its interim results, which are due to be published next Tuesday. The cement giant’s share price had plummeted to an intra-day low of €10.86 on Thursday, a level not seen since February 2003. However, it regained 3 per cent yesterday to close just below €12.10.

Food ingredients company Kerry Group, which also reports first-half results next week, delivered a strong performance. The stock added more than 3 per cent, or 81.5 cent, to close just below €26.04.

Elsewhere in the sector, Glanbia finished more than 5 per cent ahead at €4.00.

In the airline industry, Ryanair enjoyed a good turn after RBS upgraded the stock to a “buy” rating. It closed the session almost 4 per cent up, or 11 cent, at €3.05.

Rival airline Aer Lingus also ended the day in positive territory, adding a cent to 60 cent.

Though Bank of Ireland bondholders who participated in the bank’s debt-for-equity swap received their stock yesterday, this did not result in any price action. Brokers reported decent volume in the name, but it finished flat at 9.5 cent.

Yesterday’s session brought to a close a remarkably turbulent week.

“I’ve been working in this business 26 years and I don’t think I’ve seen volatility like this,” a Dublin broker said.