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ISEQ flat as CRH again weighs

Thursday, August 16 12:53:30

The ISEQ was almost unmoved this morning as CRH shares once again weighed after it received a broker's downgrade.

By 12:30, the index was down 0.11 of a point to 3,171.74.

Shares in the biggest single component of the ISEQ index - CRH - dropped for the third straight day falling 13c to E14.19 after analysts at Societe Generale and Exane BNP Paribas downgraded their recommendations on the building materials company's stock. CRH was downgraded to underperform from neutral by Exane BNP Paribas, and to hold from buy at Societe Generale. CRH said this week that second-half like-for-like European sales will decline more than the 5 per cent drop in the first half and growth on that basis in the Americas will be "well below" the 8 per cent posted in the first six months. "We do not believe the market will rerate the stock until there is clear evidence that either the upturn in US volumes can compensate for weakness in Europe or margins start to recover," Exane BNP Paribas said in a note yesterday.

Global food prices continue to rise. There has been an 11.6pc lift in price over the past two GDT auctions. The weighted average all-contract price rose by 7.8pc at the latest Global Dairy Trade (GDT) auction on August 15th. This follows a 3.5pc increase at the previous event a fortnight ago. Prices rose across all six contract periods, the strongest increase (12.3pc) occurring at the spot position. All product prices rose across all periods. The strongest increase (14pc) was in milk fat. Other price rises were cheddar +8.8pc, skim milk powder +7.3pc and whole milk powder +7pc.

Shares in Kerry Group climbed 10c to E38.40, Aryzta fell 18c to E39.20 and Glanbia rose 1c to E6.06.