DUBLIN REPORT:AFTER a respectable run on Monday, when many European exchanges were on holiday, the Iseq index edged into negative territory yesterday, closing at 6,375, down 1.75 per cent.
As has been the pattern in recent days, volumes traded in most shares were well below their usual levels.
Data on British house prices and a £192 million (€241 million) writedown at Alliance and Leicester precipitated a large drop in the UK financials. Traders said sentiment towards British banking stocks drifted across the Irish Sea, with Bank of Ireland hit hardest - possibly because of its exposure to the UK mortgage sector. It closed at €8.80, registering a loss of 4.35 per cent. Other financial stocks out of favour in Dublin yesterday were AIB, which lost 3.73 per cent to close at €13.42, and Anglo Irish Bank, which dropped in value by 2 per cent to finish on €9.31.
There were mixed fortunes in the food sector. Greencore was a big loser, down 8.03 per cent at €3.54, with traders linking the decline to a couple of poor forecasts from peers in the UK food retail sector. Kerry was the big winner, moving up 2.78 per cent to €19.94, following a statement at its agm yesterday which said revenues had grown 7.5 per cent in the year to date.
Following a very strong day on Monday, profit-taking dragged CC down by just less than 1.5 per cent to €5.30.
News of an oil find in Uganda provided some uplift for Tullow Oil, which finished at €11.65, up just over 0.5 per cent. One trader said that in comparison to the positive news coming from the exploration company in recent months the markets had not reacted as strongly to yesterday's update.
Paddy Power was down 2.4 per cent to €23.01, which traders said might indicate market nervousness in advance of this week's agm.
Iseq: 6,375 (-1.75) Settlement date: May 16th
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