Financials fall in another poor finish to subdued week

DUBLIN REPORT: Iseq: 2,572.98 (-63.37) Settlement date: July 15thIT WAS a subdued end to a subdued week on the Iseq index yesterday, as the market wound up with another poor finish. The Iseq declined 2.4 per cent, as markets across Europe weakened on a feeling that the global economic slowdown has more left to run.

In Dublin, the financial stocks maintained their losing streak, amid concerns that legislation designed to set up the National Asset Management Agency (Nama) would be delayed.

AIB was the hardest faller, with the bank dropping 8.3 per cent in trading to a closing price of €1.25. Bank of Ireland fell 7.7 per cent to €1.24, while Irish Life Permanent completed the trilogy by closing down 5.6 per cent at €2.63.

Building merchants and DIY retail group Grafton, the owners of the Atlantic Homecare and Woodies DIY chains, fell back after a positive day on Thursday, losing 7 per cent to close at €2.47.

Insulation-makers Kingspan also failed to sustain the gains it made on Thursday, slipping back 1.5 per cent to €3.93, on a day that one of its peers, SIG, reported that both the UK and Irish markets remain “very challenging”.

However, builders McInerney gained 1 cent to close at 15 cent, after UK housebuilder Bovis Homes released a statement indicating that the UK housing market is beginning to show tentative signs of recovery.

Tullow Oil fell 4.3 per cent to €9.61, following reports over the past few days from Oil and Gas UK and Deloitte indicating a drop in investment in the UK in exploration activity. Dragon Oil was up 3.3 per cent at €3.75, however.

Smurfit Kappa rose 2.66 per cent to €3.47, as a paper and packaging industry survey indicated that prices have stabilised in some of the categories in which it trades.

Elan, C&C and Greencore also closed down on what was a quietly depressing week for the Dublin market.