Bleak IMF prognosis dampens CRH and banks

DUBLIN REPORT Iseq: 2,701.83 (-53.51) Settlement date: June 30th

THE DUBLIN market closed lower yesterday as the IMF’s bleak prognosis for the Irish economy depressed investor sentiment.

CRH, the bellwether of the Iseq index, finished down almost 2.5 per cent after an extremely volatile day's trading. The cement giant closed at €16.13 after touching a low of €15.87 earlier in the session.

Banks were “on a downer” all day, brokers reported, due partly to a “hangover” from Wednesday’s IMF report which predicted that bank losses could reach €35 billion by the end of 2010.

Bank of Irelandled the fall, shedding almost 7 per cent – or 13 cent – to close just under €1.77, while AIB lost almost 6.5 per cent – 12 cent – to close at €1.74.

Irish Life & Permanentwas also down on the day, slipping almost 2 per cent to €3.10.

Budget airline Ryanairwas a little softer, as was the European airline sector in general, and finished down more than 11 cent at €3.25.

Elsewhere, Independent News & Mediafell 6 per cent to just below 24 cent after its largest shareholder, Denis O'Brien, warned on Wednesday that he would not invest further in the media group under the terms of its proposals to tackles its debts.

Oil exploration company Tullow traded up on the back of the news that London-listed oil group Addax Petroleum has been bought by Chinese oil giant Sinopec, brokers said.

Tullow finished at €10.90, a gain of 77 cent.

Elsewhere, bookmaker Paddy Powercrept up by almost 2 per cent to €17.00, while bakery group Aryztawas also a gainer, adding 31 cent to €23.00.

Cider manufacturer C&Clost some of the ground made on Wednesday, slipping 1.7 per cent to €2.30 in advance of the publication of its UK offtrade data today .