Thursday, August 15 12:58:11
The ISEQ index fell sharply in morning trading today as investors pocketed gains from a three-day rally based on renewed hope for a return to meaningful growth in the eurozone.
By 12:45, the index was down 41.27 points to 4,220.58.
European equities gave back some of their recent strong gains, in holiday-thinned volumes, led lower by Zurich Insurance on downbeat second-quarter results. The Swiss insurer said net profits fell by a bigger than expected 27 percent in the second quarter, weighed by flooding in Europe, tornadoes in the United States and meagre investment returns.
At home, shares in CRH fell 22c to E17.00. Interim results from SIG are consistent with the specific guidance given in early July. Reflecting a challenging start to 2013, H1 adjusted earnings fell over 15pc year-on-year. Outlook comments, however, suggest that trading conditions begun to improve in May and management has maintained full year guidance. Earnings revisions are therefore likely to be modest; we expect a better second half, which should result in modest earnings growth for the year overall. Trading on almost 19x current year earnings expectations, we believe the stock looks expensive after gaining 55pc year-to-date, Davy said.
Glanbia's stocks fell 7c to E9.93. MusclePharm, a peer of Glanbia's Optimum Nutrition, reported gross revenues of $28.5m, which represents year-on-year sales growth of 51pc for Q2 2013. It also announced a new distribution channel for its protein powders through an agreement with wholesale club Costco. In addition, it is launching two new product ranges in H2 2013 intended for the mass market and also catering for female customers. MusclePharm is guiding gross revenue to exceed $100m in FY2013. The statement further demonstrates the velocity with which the sports nutrition category is developing, Davy said.