CRH falls over 6% on weak US production figures

Iseq: 2,756.84 (–64.44) Settlement date: August 5thTHE IRISH stock exchange was open for trading yesterday, despite the bank holiday, although predictably volumes were low according to traders.

All eyes were on macro-events, as the US debt ceiling crisis and a steady stream of economic indicators kept analysts and investors busy.

The news overnight that the US had reached a tentative deal to avert default calmed markets initially, although the threat of a credit downgrade and negative manufacturing figures from Europe, the UK, and particularly the US, which showed that manufacturing in the US almost stalled in July, sent markets downwards, with all European stock markets ending the session in the red.

In Dublin, the Iseq mirrored the global trend, closing down more than 2 per cent at 2,757.

There were significant stock-specific moves, however.

CRH, the largest company on the stock exchange, saw some of the steepest falls, closing below the €13.00 mark at €12.87, a fall of more than 6 per cent.

The sell-off was due to the poor manufacturing figures from the US, where CRH derives approximately half of its revenue.

Other industrial and construction-related stocks suffered. Smurfit Kappa, which had appeared to be staging a rally last week, fell back 4.5 per cent to €6.85, while building materials group Grafton shed 3 per cent to €2.82.

Pharmaceutical company Elan was actively traded and advanced on the day as investors appeared to turn to more defensive stocks.

It closed up 1.3 per cent at €7.92.

As British banking reporting season began, with Irish banking stocks holding their own, they were boosted by positive first-half figures from HSBC.

Bank of Ireland was steady at 10.5 cents, while AIB closed up 9 per cent at 10.9 cents.