Friday, August 16 12:40:18
The ISEQ fell sharply again this morning as investors took profits from the index's recent run and awaited news on US and other central banks policy moves.
By 12:30, the index was down 31.78 points to 4,164.99.
European shares fell for a second day today, after reaching two-year highs this week, as investors grew nervous that the U.S. Federal Reserve will start to withdraw stimulus next month. Several traders, however, said they remained confident on prospects for European equities on a longer-term basis, reinforced by data this week showing the euro zone had pulled out of recession.
Shares in CRH fell 14c to E16.76 ahead of interim results due out on August 20th. CRH guided to H1 EBITDA of c.E400m (H1 2012 E523m) when it updated for the four months to end-April on May 8th. The period was characterised by poor weather in Europe, leading to a 12pc decline in like-for-like sales (US lfl sales fell 2pc). "We are forecasting H1 EBITDA of E396.6m, broadly in-line with guidance. In the May IMS, the group also indicated that H2 EBITDA would be up year-on-year (H2 2012: E1.04bn). This, however, assumed normal weather patterns which have not materialised in the Americas. Several sector peers have reported exceptionally wet conditions in May, June and July, especially on the east coast. This once-off impact suggests downside risk to FY forecasts with the results. Despite this, we remain positive on the stock and reiterate our 'Outperform' rating. We expect that a combination of improving US markets, stabilising European activity and delivery on cost-cutting initiatives will soon return earnings momentum to an upward curve," said Davy.