BofI leads sell-off in financials as it drops 14%

DUBLIN REPORT: Iseq: 2,819.44 (-19.88) Settlement date: December 22nd:THE IRISH bourse retreated yesterday as a sharp downgrade of Ireland's credit rating hit European banking stocks.

Investors took little comfort from the decision by European Union leaders to create a permanent crisis-management mechanism by 2013. Indexes across Europe came under pressure, but the Iseq was amongst the weakest, falling 0.7 per cent.

Bank of Ireland led a sell-off in financials, declining almost 14 per cent to just under 32 cent.

The bank announced details of an exchange offer at 4pm, but brokers said this news was already priced into the stock, and the damage had been done earlier in the session.

Irish Life Permanent was also particularly poor on the day, dipping almost 9 per cent, or 9 cent, to 96.

AIB emerged relatively unscathed, and closed down just a fraction at 45 cent.

Elsewhere, Ryanair slipped 2 cent to close below €3.74 on thin volumes.

Building materials group CRH was strong initially yesterday, and almost touched €15.50 at one point. However, it closed at a daily low of €15.21, down 17 cent, or more than 1 per cent.

CC enjoyed an uplift after UK pub group Punch Taverns released a relatively positive quarterly trading statement. The cider manufacturer gained 17 cent to €3.29.

Food stocks Glanbia and Aryzta rose more than 2 per cent each to finish at €3.39 and €33.70 respectively.

DCC continued its recent strong run, and climbed 1.6 per cent, or 35.5 cent, to finish at almost €22.36.

Volumes on the Irish market were even lighter than usual for a Friday, and one broker noted that activity has moved “down a notch” this week as the Christmas break approaches.