Banks suffer as Iseq takes its downward lead from US

Iseq:3,044.87 (–42.66) Settlement Date:January 26th

THE ISEQ slid through the afternoon yesterday, following a fairly promising start. Closing 1.38 per cent weaker, the market took its lead from the US, where stocks had been losing ground even before President Obama unveiled his proposals for making the financial system safer.

The Irish banks took a battering in the main, although volume was fairly light. AIBdropped by 7.8 cent to €1.431, while Bank of Irelandshed 7 cent to finish at €1.45. Irish Life & Permanent, by far the busiest of the three, closed 21.3 cent weaker at €3.50. In the same sector, FBDposted a 20 cent decline to €6.50.

Positive movements were hard to find by the end of the session, but Ryanairprovided an exception after flagging fare increases and capacity cuts in Dublin. Shares inched up by 1 cent to €3.40, while fellow airline Aer Lingusweakened by the same margin to finish at 71 cent.

Market heavyweight CRHsuffered in the generally negative mood, falling by 14 cent to €17.81.

DCC became one of the few newsmakers on the day when it said it would reorganise its UK environmental business. Shares closed 31 cent lower at €20.09.

In London, where its shares are mainly traded, Tullowhad a rollercoaster session, starting on a high with positive news from a project in Ghana. Reports of problems with its plans to block ENI's purchase of Heritage assets in Uganda emerged later in the day, however, pushing shares down to close 47p lower at £12.78.

Back in Dublin, Graftoncame under some pressure in relatively heavy trade, finishing 6 cent lighter at €2.85.

On the upside, United Drugrose 5 cent to €2.33 and IFGadded 2 cent to €1.40. Fyffesadvanced one cent to 46 cent. Weakness was, however, the prevailing theme, with other losers including Independentand Smurfit Kappa.