CRH Rises as Company Predicts Inclusion in FTSE UK Index Series
Stock Chart for CRH PLC (CRH)
CRH Plc (CRH) rose as much as 5.3 percent in Dublin trading after the Irish building-materials maker said it may be included in the FTSE UK Index Series, triggering expectations that index funds will buy the stock.
CRH rose as high as 13.18 euros and was up 4 percent as of 10:38 a.m. The Dublin-based company said in a statement today that its primary listing will shift to London from its hometown stock exchange on Dec. 6.
“In the short term, there will be buying on back of the move to the FTSE,” said Robert Eason, a Dublin-based analyst with Goodbody Stockbrokers. “What remains to be seen is what happens after the technicals dissipate. We are seeing the technicals today.”
CRH said in a separate statement that fourth-quarter earnings before interest, taxes, depreciation and amortization will match the year-earlier figure of about 400 million euros ($551 million), compared with an earlier forecast of an increase. Chief Executive Officer Myles Lee said in a phone interview that the euro area’s sovereign-debt crisis is beginning to affect customers’ project plans, weighing on earnings.
“We are seeing a slowing of activity over the recent weeks in some of our European operations,” Lee said. “The impact of the euro-zone crisis does seem to be having some impact on people’s investment planning and that is leading to a lower expectation for the fourth quarter.”
CRH expects full-year Ebitda of about 1.6 billion euros, unchanged from 2010.
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