Iseq slides as confusion over bailout stalls trade

DUBLIN REPORT: Iseq:2,651.80 (-45.25) Settlement date:November 19th

THE MARKET closed yesterday before Taoiseach Brian Cowen’s much-anticipated statement to the Dáil, with the result the market was in “limbo” for much of the day according to one Dublin trader.

On a day when Ireland’s financial woes dominated market commentary around the globe, the Iseq index finished the day 1.68 per cent down, in line with markets across Europe, which opened lower on the back of a sell-off overnight in the US.

While the Iseq climbed in morning trade, bolstered by anticipation a bailout for Ireland was imminent, it fell off significantly in the afternoon due to the lack of information regarding any such intervention.

Most stocks ended in negative territory. As speculation about the state of Irish banks preoccupied markets across the world, Irish bank shares continued to be extremely volatile. Volume on AIB, which closed down 3.4 per cent at €0.393, continued to be very light. Bank of Ireland saw lower volumes than usual. It shed 1.3 per cent to finish at €0.391.

Ryanair dropped by a hefty 3.3 per cent, after Goldman Sachs moved the airline off its conviction buy list. Its downward movement was also in line with rival and peer company Easyjet, which saw a fall in share price following results.

Other movers included financial services company IFG, which fell 0.8 per cent to €1.30 despite the fact the company said in a trading update its performance in the nine months to the end of September had been “satisfactory”. It is predicting earnings per share of 18-20 cent for the year.

Irish Continental Group was one of the few companies to finish in positive territory yesterday ahead of the release of its interim management statement tomorrow. Following decent volumes in morning trade, the ferry company closed up 1.3 per cent at €15.30.