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Despite a rally from financial stocks, the Irish market closed down 3.1 per cent today, as drugs manufacturer Elan lost a third of its value.

In a day when domestic news weighed heavily on the Iseq, the index fell by 143.18 points to close the day at 4,441.86. Better than expected results from AIB saw financial stocks rally, but Elan fell by 31.8 per cent, or by €6.54 cents to €14.02, after detailed clinical trial results for its new Alzheimer drug proved mixed.

The decline in Elan’s value saw it toppled from its position as the largest stock on the Iseq index in terms of market capitalisation, and it is now the third largest stock.

AIB announced better than expected results today, as well as an increase of 10 per cent in its dividend, causing the stock to rise by 6.8 per cent, or by 50 cents, to close the day at €7.85.

Boosted by AIB’s news, the other financial stocks also rose. Anglo Irish Bank closed up 6.4 per cent, or by 34 cents, to €5.59, while Bank of Ireland finished the day up 3.1 per cent, or by 16 cents, to €5.39.

Irish Life & Permanent shrugged off concerns over its funding base when it confirmed that it had refinanced €3 billion of debt coming due this year. The market reacted positively to the announcement, leading the stock to jump by 11.7 per cent, up by 54 cents to €5.15.

It was also a good day for paper and packaging firm Smurfit Kappa, which increased by 6.9 per cent to close the day at €3.67, up 24 cents.

CRH was upgraded by Lehman brothers, and this saw its share price rise by 5.2 per cent, or by 83 cents to €16.79.

Kingspan also saw its share price rise, up by 5.1 per cent, or 30 cents, to €6.23.

It was another poor day for airline stock Ryanair, which saw its value decline by 4.4 per cent, or 12 cents, to €2.49. 

In the US, stocks rallied after the ADP report revealed an unexpected improvement in the jobs market and the Fed extended emergency lending for banks. At 11.50 am, the S&P 500 index had increased by 12.04 points, or by 1 per cent, to 1,275.24. 

In the UK, Lloyd’s Bank announced some disappointing results, with its profits down by 70 per cent, but some good results from insurance stocks saw the FTSE 100 close up by 2 per cent, or by 106.5 points, to 5, 425.7.
In Europe, Siemens announced very strong results, ahead of expectations, while steel producer ArcelorMittal also revealed impressive results. In Frankfurt, the DAX closed up 1 per cent and in Paris the CAC 40 finished the day up 1.9 per cent.