Banks worst performers as Iseq loses ground

DUBLIN REPORT: Iseq:2,731.83 (–18.27) Settlement date:September 27th

THE DUBLIN market spent most of the day in negative territory in line with the European trend, as a downbeat assessment from the US Federal Reserve overnight weighed on the market.

Despite opening higher, there was “no conviction” in the market, according to one Dublin trader, with most stocks closing lower.

Financials saw most of the falls, mirroring the pattern in Europe, where banking stocks led most indices lower. AIB and Irish Life and Permanent were the worst performers among the Irish financials, as investors held back ahead of expected developments from both institutions as regard to fund-raising in the coming weeks.

AIB shed 5.8 per cent ahead of its investor roadshow and expected rights issue, closing at just under €0.60. Irish Life Permanent fell by 7 per cent, or 11 cent to €1.45.

Bank of Ireland again saw the most investor activity, though it too fell by 2.3 per cent to €0.64.

Elsewhere, agri-nutritional company Origin Enterprises closed 1.8 per cent lower, despite posting full-year results that were ahead of market expectations, though revenue and operating profit both declined.

Aryzta, which owns a 71 per cent stake in Origin, was up just under 1 per cent on the day at €34.05. Other food stocks fell, however. Greencore shed 2.4 per cent to €1.16 while Glanbia was down 1.5 per cent at €3.54. Kerry Group also traded lower, closing down 10 cent at €25.83.

Ryanair, which held its agm yesterday closed down 2.3 per cent at €3.80, with the airline providing “no surprises” to the market according to traders.

Aer Lingus was one of the few stocks to advance yesterday, continuing its upwards trajectory closing up 1 cent at €1.03.

Smurfit Kappa saw significant activity but it closed lower, shedding 2 per cent to finish at €7.20.