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ISEQ slumps below 3,300 mark again

Monday, October 08 17:38:19

The ISEQ fell below the 3,200 level again today as world markets slumped after the World Bank cut its growth forecast for China, emphasising concerns about the strength of the global economy.

The index fell 42.02 points to 3,297.29.

The main Dublin shares index lost most of the gains it made last week as investors await the result of an EU ministerial meeting today with Spain in the spotlight.

The meeting of eurozone finance ministers will focus on efforts to secure the next tranche of funding for Greece and attempts to tackle the Spanish crisis. With the Greek government looking to secure E6.5bn in funding ahead of the November deadline, the finance ministers will likely make positive signals towards the Greek austerity efforts ahead of the visit of Chancellor Merkel to Athens in which she is expected to signal her commitment to Greece remaining in the currency union.

At home, shares Kerry fell 34c to E40.47. Goodbody Stockbrokers noted that Cranswick, the UK manufacturer of sausages and cooked meats, said today that its performance in H1 to end September was in-line with its expectations. Underlying sales increased by 5pc, with total turnover higher again due to a small acquisition made last year. The company commented on the fact that pig prices were increasing and further rises were expected and that "discussions on price increases will be necessary with its customers. "Kerry is the market leader in sausages in the UK and Ireland. The impact of raw material price increases will be offset by on-going cost efficiency programmes as part of the Kerryconnect programme, though selective price increases may also be necessary," according to analyst, Liam Igoe.

Shares in recruiter, Cpl Resources, fell 10c to E3.30. Its global peer, Michael Page this morning released its Q3 IMS. Group Q3 gross profit was £126.5m (£133.3m at constant rates of exchange),11.3pc below (-6.5pc on constant currency) Q3 2011. "Michael Page's IMS reflects the challenging economic environment. It has stated that it expects full year operating profit to be slightly below current analyst expectations (consensus c.£68m). Although this has limited read-through for CPL, it does point to a potential deterioration in the recruitment environment. CPL is a niche player that has adeptly navigated the difficult environment. The company trades at 7.2x EV/EBITDA for CY 2012E compared to 8.4x for the sector. We continue to feel comfortable with our estimates and believe the full year run rates of customer wins will help drive growth at CPL. We continue to rate CPL 'Outperform'," said Davy analyst, Joshua Goldman.