Wednesday, March 19 17:38:11
The ISEQ fell sharply in afternoon trading although newly issued shares in Ireland's biggest hotels group, Dalata, jumped 16pc at the open.
The index was down 61.95 points to 4,899.96.
Dalata floated on Irish and London stock markets at E2.50 this morning in E265 million listing. Shares are currently trading at about E2.90. It raised E265 million from institutional investors from the United States and Europe eager to cash in on the mini-boom in Irish hotel assets. The company, which operates 40 hotels and is run by former Jurys chief executive Pat McCann, has an initial market capitalisation of E305 million. After paying fees of about E10 million associated with the flotation, Dalata will have a war chest of E255 million to buy up to 25 new hotels in Ireland.
HeidelbergCement has reported FY 2013 results, having pre-announced to the operating income line on February 6th. The detailed release shows debt levels higher and the dividend lower than we had anticipated. The group's cost reduction targets are unchanged while overall cost inflation will be light-to-moderate. "Guidance is broadly as expected with management targeting an increase in sales and operating income in 2014. However, given high expectations for the stock, this may surprise negatively. We remain cautious on the name and recommend taking profits at these levels," said Davy Research in Dublin. Shares in CRH fell11c to E19.75.
Kerry Group shares fell 104c to E54.36. Prices moved sharply lower at the Global Dairy Trade (GDT) auction yesterday. The GDT index fell 5.2pc, its steepest decline since the June 4th event. All dairy product prices declined except buttermilk powder (BMP) and milk protein concentrate (MPC). Casein and anhydrous milk-fat prices were particularly weak. They each lost 10.7pc. Skim milk powder (SMP) and whole milk powder (WMP) prices lost 1.7pc and 5.8pc, respectively.