Eircom decline pushes ISEQ downwards

The ISEQ index fell some 1.5 per cent yesterday in quiet trading, closing 80.24 down on 5,045.30.

The decline of Eircom dominated market attention as the telecoms stock sank to its lowest-ever close at €3.24, down 16 cents on its previous close and 66 cents off its flotation price.

Ongoing uncertainty surrounding the 14 per cent stake in the company held by the Swedish group, Telia, largely overshadowed Eircom's results, which were broadly in line with expectations.

One analyst described as "unfortunate" the surprise decision by Telia to hold on to its stake in the company. "Eircom can't recover until the 14 per cent overhang is out of the way," she added.

It was a "pretty quiet" day elsewhere on the market. Among the financials, AIB fell eight cents to €10.22 and Bank of Ireland shed 6.5 cents to close at €6.985. Anglo Irish Bank shed five cents to close at €2.47, while First Active fell five cents to €2.00.

Smurfit fell one cent to €2.16 following the companies a.g.m, while CRH shed 40 cents to close at €19.60. Tullow Oil was down three cents at 87 cents.

Weakness in the technology and telecoms sectors hurt ITG, which shed 55 cents to finish at €11.20. This volatility was reflected on international markets, where several Irish technology stocks were down as the ISEQ closed last night.

The main losers were Trintech, which was down €4.05 at €19.25 on the German Neuer Markt, and Iona, which was down $3 3/8 at $38 3/8 on the Nasdaq.