Financials lead the way down in wave of selling

Iseq:2,776.55 (-109.59) Settlement date:May 28th

FINANCIALS LED the way down as the Irish market was caught up in the wave of selling that hit global equity markets yesterday.

The Iseq index fell more than 5 per cent at its worst yesterday before rallying somewhat in afternoon trade to end the session 3.8 per cent weaker.

Traders said that it wasn’t until US markets opened that European markets, including Dublin, regained any poise. Only four shares managed to end the day in positive territory as the market succumbed to the general malaise.

AIBwas the biggest loser, tumbling almost 20 per cent at one point as investors took fright at news of Spain having to bail out a savings bank. It recovered some ground to finish on 90.7 cent, a loss of almost 13 cent on the day.

Worries about the prospects for the euro-zone banking sector also hit Bank of Irelandwhich gave up 8.9 per cent to close on 66.5 cent, a loss of 6.5 cent. The rights on offer from the company "corrected quite significantly" according to traders, dropping by a third to 11 cent as smaller investors sold.

Index heavyweight CRHwas also sold off on surprising news that the group's chief financial officer was standing down to return to the US. The shares dropped as low as €16.75 before finding buyers who pushed the price back to €17.16 at the close, a loss of 3.6 per cent, or 64 cent.

Greencoreheld up well after strong interim figures showed growing margins, only to succumb towards the end of the day, shedding 2.8 per cent to €1.215. C&Cwas 2.47 per cent weaker on €3.205 after unveiling its full-year numbers to the end of February.

Providence Resourcesshed 20 per cent after announcing it would not exercise an option to acquire a stake in the Kinsale Head project while Readymixwas over 17 per cent down following an annual meeting that gave shareholders little cheer.