Iseq:2,687.26 (+22.13) Settlement date:November 11th
TRADING IN Dublin may have been primarily influenced by international events over the last few months, but yesterday focus firmly returned to domestic news after CRH announced it is to move its primary listing to London.
The surprise announcement send shockwaves around trading floors in Dublin and sent CRH’s share price 4 per cent higher, to €13.02. There was anticipation that the broadening of the investor base and the inclusion of CRH in FTSE-tracking index funds would lead to a big demand for its shares.
The announcement overshadowed disappointing first-half results from the construction giant, which were behind consensus forecast, due mainly to pressure on margins. CRH, which accounts for about a third of the Iseq, plans to move by mid-December. Its loss will be a major blow to the Irish bourse, although it will still retain a secondary listing.
There was plenty of additional stock-specific news yesterday.
DCC saw some of the steepest falls after the company said that operating profits for the six months to the end of September fell by 14.2 per cent to €58.3 million and predicted that operating profit for the full year would be down 5 per cent. DCC’s share price closed down 4 per cent at €18.10.
C C rose more than 3 per cent to €3.03 after the drinks company announced it is to acquire American’s second-largest cider brand, Hornsby’s, for a total consideration of €20 million, consolidating its position in the US cider market where it already sells Magners.
Smurfit was another significant mover ahead of interim results today, finishing up 5.5 per cent at €5. Ryanair again performed well after the airline raised its full-year guidance on Monday by 10 per cent, up just under 1 per cent at €3.56.
The Iseq closed up 22 points, due overwhelmingly to the CRH surge. From today it will see its shares in London traded in sterling.
