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ISEQ closed flat after morning losses

Monday, January 28 17:36:06

The ISEQ slipped out of the red this afternoon as investors turned cautious and as Ryanair stocks dipped after its recent surge.

The index was up 1.44 points to 3,554.50.

Ryanair posted very strong Q3 results with Q3 net profit of E18.1m up 21pc year on year (yoy). Q3 revenues increased by 15pc to E968.8m driven by an 8pc increase in yields and a 3pc rise in passenger numbers. Ancillary revenues rose by 24pc due to the combination of an improved product mix, roll-out of reserved seating and higher internet- related revenues. Unit costs ex-fuel rose by 4pc due to Italian ATC costs, Spanish airport charges and the strength of sterling (likely impact of c.1pc, with closer to 2pc benefit on the yield front). Total unit costs were up 11pc, driven by a fuel increase of 24pc, leading to operating margins down 1 point to 18pc. The primary driver for beating forecasts was improved revenue, helped by market capacity discipline, product (punctuality etc) and roll-out of reserved seating. Shares in the airline fell 11c to E5.39.

CRH shares were flat at E15.77. The American Institute of Architects (publishers of ABI) has released its latest bi-annual review of consensus forecasts for the non-residential sector. It shows that the is expected to grow by 5.0pc in 2013, which is slightly down from the 6.2pc reported in July. This revision reflects lower forecasts for all of the key segments (commercial, industrial and institutional). Growth is expected to accelerate to 7.2pc in 2014. Overall the commentary from the AIA is generally of a positive tone towards the non-residential, especially given that the ABI has now been above the critical 50 level for five consecutive months. "These forecasts are consistent with the mid-single digit growth in our models. For Wolseley the sector represents circa 44pc of its US business while it is 30pc for CRH. The key difference between the two companies is that CRH is more exposed to infrastructure where growth is expected to be subdued whereas Wolseley has greater exposure to the cyclical recovery in residential markets," said Goodbody's.