Iseq dips amid fresh concerns over euro zone debt crisis

Iseq: 2,571.64 (–35.01) Settlement date: October 18thEUROPEAN MARKETS closed lower yesterday, reversing the previous day's rally, amid renewed concerns about the euro zone debt crisis and a warning from the European Central Bank that imposing further losses on holders of Greek debt would affect the stability of the euro region.

However, Ireland’s debt markets received a boost after ratings agency Fitch said the country could return to borrowing on the markets in 2013 as planned.

Equities continued to be volatile, however, with trading in Dublin affected by macro-economic concerns. The Iseq’s financial names were sharply down in line with the European trend.

Bank of Ireland and AIB which had both advanced on Wednesday, lost ground, although the percentage moves made little impact on the price of the stock.

Material stocks also slid with CRH closing at €12.79, a fall of more than 2 per cent.

Grafton was one of the strongest performers, adding 3 per cent to close at €2.87.

Defensive stocks such as Kerry Group and DCC held their own in what was a weak market overall. Kerry Group added 40 cents to finish at €25.95, while DCC gained 2 cents to €19.04.

Drinks company CC gained close to ½ per cent ahead of interim results next week. It closed at €2.94. Greencore, which recently received regulatory approval for its acquisition of British company Uniq, added more than 5 per cent to finish at €0.60.

Donegal Creameries gained 9 per cent amid reports that talks to sell its dairy division to Connacht Gold have ended without agreement.

As the chief executive of Tullow Oil moved to refute allegations against the company connected to its activities in Uganda, its share price regained some ground lost on Wednesday, rising almost 1 per cent, or 12 cents, to end at €15.50.