MARKET REPORT: The Irish stock market shed more than 3 per cent of its value yesterday, hit by ongoing weakness in Bank of Ireland and its negative impact on other financial stocks.
Settlement Date: October 14th
A weak opening on Wall Street, amid continued concerns about corporate earnings, did not help matters.
Dealers said the 15 per cent drop in Bank of Ireland shares since news of its approach to Abbey National leaked out over the weekend had hit the ratings of the other Irish banks.
More than 5.5 million Bank of Ireland shares traded yesterday as the stock fell for the third straight session, losing a further 32 cents, or 3.5 per cent, to €8.68.
But dealers said it should see some support at €8.50, a big level for the shares.
Having initially shrugged off the collapse in Bank of Ireland shares, AIB succumbed to selling pressure yesterday, shedding 35 cents, or 2.8 per cent, to €11.95.
Anglo also weakened, finishing 42 cents down at €5.75 while Irish Life & Permanent closed 60 cents weaker at €10.40.
Industrial stocks did not remain immune to the financial downturn, finishing lower across the board.
CRH remained out of favour, losing 19 cents to €11.30 while Ryanair was off 22 cents at €5.20.
Kerry Group lost 27 cents to €12.60 while Jurys Doyle shed 33 cents to €6.47.
Kingspan dropped by 10 cents to €1.35 after announcing the suspension of its share buyback programme following a ruling by the takeover panel.
Others in the building sector also suffered, with Grafton closing 13 cents lower at €3.30 while Heiton lost five cents to €2.05 although volume among secondliners was light.
