Monday, September 24 12:53:17
The three-day rally in Irish shares last week went in to reverse this morning as eurozone crisis and growth concerns once more came to the fore.
By 12:30, the ISEQ was down 38.12 points to 3,305.43.
European shares fell as signs of economic weakness in Europe and Spain's unresolved debt crisis curbed a two-month equity rally, leaving the market exposed to a possible pullback. Basic resources and construction material shares, down 1.8 to 2 percent, led the selloff, which gained momentum after a closely watched survey showed German business sentiment unexpectedly dropped in September. The reading, hard on the heels of weak purchasing managers' indexes (PMI) last week, was a sign that a European Central Bank pledge to help struggling countries failed to reassure businesses hit by the effects of the debt crisis, which has hurt export markets and sapped investment.
Aryzta shares led the fall with the stock down 326c to E37.59 after it reported pre-tax profits of E444.1m for the year to July, up 12.9pc on the previous year. The food company, formed from the merger of IAWS and Swiss bakery group Hiestand, reported a 8.5pc increase in group revenue to E4.2 billion. It said its performance for the 12 month period was ''satisfactory'' given the challenging macro environment. ''Weak consumer spending affected our customers and the impact of government austerity measures was particularly noticeable in Europe,'' commented the company's chief executive Owen Killian.
DCC last week announced a conditional agreement to acquire BP Gas Nederland BV, BP's liquefied petroleum gas (LPG) distribution business in the Netherlands, together with BP's smaller LPG distribution business in north Belgium (both trade as Benegas). The acquisition is of course conditional on competition approval, and the deal is expected to be completed in late 2012. ANALYSIS: The total consideration payable by DCC for Benegas is E24.5m on a cash free/debt free basis to be satisfied in cash at completion (c.6.1x adjusted operating profit). The adjusted gross tangible operating assets of Benegas were approximately E15.4m at December 31st 2011, while the adjusted net tangible operating assets were approximately E6.7m. Benegas had an adjusted operating profit of E4.0m in 2011. DCC's shares fell 5c to E21.95.