Falling US prices and banks take Iseq lower

MARKET REPORT:A FALL in New York prices sent Irish stocks lower yesterday during an otherwise quiet session, dealers in Dublin said.

The Iseq Index of Irish shares was one the poorer performers in Europe, closing 1.29 per cent off at 2415.

London’s benchmark FTSE-100 index ended the day 12.43 points down at 4018.23. Europe’s Down Jones Stoxx 600 index, which measures key shares across 18 markets, dropped just 0.5 per cent to 191.49.

In Dublin, the big banks once again took a dive. AIB was down more than 7 per cent at 85.9 cent.

Investors disposed of just over 2.5 million of the bank’s shares on the Dublin market.

Bank of Ireland also fared badly, falling 7 per cent to 67 cent.

Over 2.35 million shares in the bank changed hands yesterday. Their rival, Irish Life Permanent, gained ground, adding €1.65 per cent to close at €1.85. Dealers said the volumes suggested that most of the action in the Irish banks was down to retail trade.

Packaging specialist, Smurfit Kappa, broke the €2 barrier to close at €2.06 on the back of news that a shake up of one of its rivals will cut capacity in its industry. The stock gained 8.4 per cent, making it one of the stronger performers on the day, dealers said.

Building materials and DIY group, Grafton, was another strong performer yesterday. The stock added 8.8 per cent to close at €2.60. Dealers said that British rival, Persimmon, produced results yesterday that were ahead of expectations.

Drinks group CC gained 4.75 per cent to close at €1.655. Dealers suggested that the impact of yesterday’s British budget duty increase of 4 pence on cider, its biggest product, was less than the market expected.

Independent News Media added one cent, or 4.35 per cent, to close at 24 cent yesterday.

Settlement date: April 29th