THE Irish market continued in gentle decline, with little corporate news to boost sentiment and weakness across Europe holding back any gains. A softness in the main financial stocks, which fell almost 1 per cent following weaker bond markets, also held the market back, traders said.
However, a sell note on CRH from British stockbroker County NatWest led to large scale selling from both domestic and overseas institutions. Around one million shares changed hands. It closed 13p lower at 602p having traded as low as 600p during the session.
Golden Vale jumped to 71p sterling from 66p on an order for 5,000 shares. While Kerry lost 5p to 625p. DCC was marked down 5p to the sterling equivalent of 265p. Traders said there is a lot of stock around at the moment and it is looking a little weak.
AIB lost 4p to 318p while Bank, of Ireland lost 4p to 416p. Investors continued to switch out of Irish Life and it lost 41/4p to 2323/4p.
The bond market also eased slightly, tracking European markets lower. A surprise 0.1 per cent hike in Dutch interest rates also hit sentiment in Europe. The shorter dated bonds in most countries lost ground, despite a pick up in US treasuries after better than expected producer price figures.
Traders said the Dutch hike confirmed the strengthening in European economies. "It makes a German repo cut less likely and also makes it easier for the Irish Central Bank to consider driving money market rates up a little further," one dealer said.
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