Iseq's slide tracks dip in values across global markets

Iseq: 2,926.53 (–16.64) Settlement date: May 10thTHE ISEQ index was unable to buck the negative trend that pervaded global markets yesterday after investors were unnerved by a jump in US unemployment benefit claims.

Fears that a recovery in the world’s largest economy may be stalling, combined with disappointing bank earnings, drove stocks down.

While signals from ECB president Jean-Claude Trichet that euro zone interest rates are unlikely to rise next month helped to arrest the fall in European markets, the Iseq closed 17 points down at 2,926.53.

IFG’s share price had been boosted on Wednesday by the announcement that it had received an approach which might lead to an offer to buy the company, but the Dublin-based financial services firm gave up some of those gains.

It closed the session almost 3 per cent, or five cent, down at €1.70.

Smurfit Kappa, which will report first-quarter results this morning, was also out of favour. The paper and packaging giant slipped more than 2 per cent, or 20 cent, to €8.69, even though its peer Mondi reported that price increases and higher volumes had more than offset input cost pressures in quarter one.

CRH also found itself in negative territory at the closing bell, finishing 1.6 per cent, or almost 27 cent, lower at €15.96. This drop came on the heels of mixed results from the cement group’s peers yesterday morning, with Lafarge’s first-quarter figures coming in behind consensus, while HeidelbergCement’s numbers were slightly ahead.

Elsewhere, Aer Lingus held up fairly well – it slipped just one cent to 82.5 cent – considering its announcement yesterday morning that first quarter losses were almost 42 per cent higher than in the same period in 2010.