CRH rallies on Trump vow to spend ‘big’

SHARES in CRH soared 2.3pc, beating a key index of European construction and materials sector stocks, after US President Donald Trump pledged to spend “big” on infrastructure.

The same news lifted the S&P 500 and the Dow Jones Industrial Average to record intraday highs on Monday.

Dublin-headquartered CRH is seen as well-placed to benefit from a ramp up in higher US spending through its US-based construction supplies arms.

Despite speculation that the Irish company could benefit from Trump’s plan to build a wall along the Mexican border, the company doesn’t own cement businesses in the US south-west.

The wider Stoxx 600 Construction and Materials sector was up 0.5pc after the US President said the US was going to “start spending on infrastructure big”, at the National Governors Association.

CRH rose 2.3pc; Melrose Industries was up 1.7pc and Heidelberg-Cement was up 1.4pc.

Elsewhere, the Iseq index was up just shy of half a per cent, but it was a mixed day on the Dublin market.

Insurer FBD dropped 2.32pc to €8.01 after publishing results that showed a return to modest profit in 2011.

The banks were mixed, AIB shares rose 1.96c to €5.20 a share, while Bank of Ireland slipped by just under 1pc to 22.30 cents each.

Investor focus today will be on a key ‘state of the union’ speech later this evening by Mr Trump that’s expected to provide more details on his policymaking plans.

He is expected to lay out his proposals on health-care reform and infrastructure spending to a joint session of Congress, as well as any moves to cut the US corporate tax rate.