Recovering Iseq dips again on US house sales data

DUBLIN REPORT: Iseq:3,016.03 (-20.91) Settlement date:January 28th

ONCE AGAIN the Iseq index outperformed the main European markets on what was described by a broker as another gloomy Monday in January.

After the Dublin market closed last Friday, the US market continued its three-day slide (sparked by President Obama’s plans to curb risk-taking at banks) by falling a further 2 per cent. As a result, the Iseq opened weak. It bounced back, only to dip again in the afternoon on the news that US home sales slid more than expected in December.

Irish banking stocks traded more or less unchanged for most of the session, despite media speculation over the weekend that the “haircut” on loans transferred to Nama may be higher than the expected 30 per cent.

AIB finished down less than four cent, just below €1.37, while Bank of Ireland was off a little over a cent at €1.42. Irish Life & Permanent added about one cent to €3.50. Packaging giant Smurfit Kappa proved the star performer on the day, gaining more than 4 per cent, or 26 cent, to €6.38. This pretty much rectified the “kicking” the stock had received last Friday “for no apparent reason”, one broker said. Cider manufacturer CC nudged ahead fractionally to €2.77 on the back of comments by Heineken that it sees international potential for cider.

Elsewhere, Elan fell by more than 1 per cent, or six cent, to €5.58, despite its positive announcement yesterday that the US Food and Drug Administration (FDA) has approved its drug technology Amprya as a treatment for multiple sclerosis patients.

Brokers noted that a few sellers came into the oil exploration names on the day. Dragon Oil was off 4 cent at €4.97, while Tullow Oil lost more than €1 – almost 7 per cent – to close at €14.31 on the Dublin market. On the London Stock Exchange the stock shed 1.33 per cent to £12.61.