PRODUCT PROFILE

Latest Dublin Prices

ISEQ hit by economic woes

Thursday, February 21 17:37:24

The ISEQ fell sharply today as investors mulled some disappointing economic indicators from the EU.

The index fell 56.79 points to 3,623.27.

Hopes the euro zone might emerge from recession soon were dealt a blow today, as surveys showed the downturn in the region's businesses worsened unexpectedly this month - especially in France.

Economists had expected that today's Flash Eurozone Services PMI, a business survey and one of the earliest monthly indicators of economic activity, would add to tentative signs that a recovery is in the offing. But the indicator fell in February to 47.3 from 48.6, marking a year below the 50 threshold for growth and confounding expectations for a rise to 49.0 from more than 30 analysts polled by Reuters, none of whom forecast such a poor reading.

Shares in C and C fell 1c to E4.89. Boston Beer Company reported an 8pc underlying increase in earnings in Q412 yesterday. This was driven by a 16pc increase in depletions during the quarter. The company's cider brand, Angry Orchard, was a key element in this though its contribution to this growth is not specified by the company. For 2013, it is forecasting shipments growth of between 10-15pc and is targeting price increase of between 1-2pc to cover some raw material price increases.

Mondi has reported underlying operating profit of E568m (down 9pc yoy) which is consistent with the recent guided range of E540-620m. Basic EPS of 50.5c (-12pc yoy) compares to guidance of 48-52c. "While there is no incremental newsflow in the Mondi statement we remain positive on the sector as producers look to secure a second round of price increases through. If these are successful we see upside to forecasts for both DS Smith and Smurfit Kappa," said Goodbody's. Shares in SKG dropped 30c to E11.33.