NEW FEARS over the health of global financial stocks helped drag the Iseq back into the red yesterday, ending its brief winning streak, writes Ciarán Brennan.
A flurry of selling in the afternoon saw the Iseq drop 2.54 per cent as it shed 119.15 points to 4,570.72, with banks bearing the brunt of the sell-off.
Financial stocks were weak throughout Europe and in early trading in the US as nervousness about the health of banks crept back into the market after JP Morgan Chase signalled that it may write down $1.5 billion in mortgage assets.
A lack of liquidity and light volumes in the Irish market meant that Irish banking stocks were harder hit than their European counterparts.
Anglo Irish Bank, ahead of its pre-close trading statement today, took a hammering with its share price plunging nearly 12 per cent as it lost 81 cent to close the day at €6.02.
Irish Life Permanent fared little better as 9.43 per cent was knocked off the value of its shares. By the end of the day it had shed 64 cent to €6.15.
AIB was just over 4 per cent weaker at €8.85, while rival Bank of Ireland dropped 21 cent to €6.10.
On a more positive note, United Drug closed the day nearly 2 per cent stronger as it tacked on seven cent to €3.66 following its robust trading statement in which it said it expects to deliver another period of double-digit profit and earnings growth for the year to September 30th despite the fall in the value of sterling.
Construction stocks also held up well relative to their peers, but volumes were generally light across the board. Grafton picked up four cent to €4.39, while Kingspan was 3.4 per cent better off at €7.60. McInerney was more than 1 per cent stronger ait €0.375, while CRH eased back 16 cent to €18.88.
Iseq: 4,570.72 (-119.15) Settlement date: August 15th
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