Iseq builds on earlier gains as Grafton climbs 3.5%

Iseq:2,989.08 (+9.86) Settlement date:February 21st

THE ISEQ index edged higher yesterday, but remained stubbornly below the psychologically significant 3,000 mark.

Building materials group Grafton set the pace on the Irish market, rising 3.5 per cent, or almost 13 cent, to €3.72.

The agri-food sector enjoyed another positive session, with Glanbia leading the way. The nutritional ingredients and cheese group was supported by a strong turn from Dean Foods, the largest US dairy company, which gained 7 per cent on the back of its quarter four numbers. Glanbia was lifted more than 1 per cent, or 5.5 cent, at €4.25.

Heineken’s 2010 results proved positive for cider manufacturer C&C. Although it predicted that 2011 will be another tough year for the Irish drinks industry, its update highlighted the attractive-ness of the cider category in the UK and internationally.

Heineken closed up 3 per cent at a 52-week high, while C&C added more than 1 per cent, or four cent, to close at €3.51.

Bakery group Aryzta advanced about 1.5 per cent, or 50 cent, to €32.80. Greencore failed to tap into the positive momentum in its sector. The stock flatlined at €1.22 despite reports it has held discussions with a number of major food companies, including Nestlé, about mounting a revised bid for Northern Foods.

Paddy Power closed lower despite better than expected quarter four results from Unibet. Both William Hill and Ladbrokes rose between 4 and 5 per cent, but Paddy Power was down about 1 per cent, or 40 cent, at €28.55. However, a broker explained that this fall was due to a trading anomaly and that the true effect should be evident today.

Drug manufacturer Elan fell six cent to €5.06, while United Drug rose 2.5 cent to €2.22 ahead of its interim management statement today.