The Iseq index got caught up in the global equity sell-off today, tumbling by about 1.5 per cent as investors were rattled by euro zone debt contagion fears.
A barrage of negative news in the marketplace created headwinds for equity markets across the globe, as fears escalated that Italy could be the next domino to fall in the euro zone crisis. Last Friday’s dismal US jobs report, and data showing that China’s inflation level remain high, also weighed on markets.
A number of the Iseq's constituents recorded double-digit falls on the day. Bank of Ireland, which held its extraordinary general meeting this morning and announced details of a rights issue on Friday, slumped almost 13 per cent. However the stock is trading at such low levels that this equated to a fall of just 1.5 cent, leaving it at 10.1 cent.
Also in the red was Independent News & Media, which finished almost 10 per cent lower, or 4.5 cent, at 43 cent.
Builders merchants and DIY retailing group Grafton was out of favour as new figures showed that construction activity in Ireland continued to deteriorate in June. Coming on the heels of the group’s disappointing results released last week, this indicator appeared to knock the stock, which closed almost 8 per cent lower, or about 24 cent, at €2.81.
Drug manufacturer Elan was among the few winners on the day, gaining more than 4 per cent, about 36 cent, to close at €8.58.
Overall the Iseq index fell 43.28 points to 2,900.25. France's CAC 40 Index lost 2.9 per cent. Germany's DAX Index retreated 2.4 per cent and the UK's FTSE 100 slipped 1.1 per cent.
Additional reporting - Bloomberg
