European losses push Iseq to three-month low

Market report: The Irish stock market hit its lowest level in three months yesterday as European stock markets were knocked by interest rate jitters.

The Iseq index lost 86 points, or 1.1 per cent of its value, to close at its lowest point since February 15th as the FTSE slumped by 1.2 per cent and other European markets also fell.

Dealers said fears over rising interest rates, fuelled by higher inflation and rising commodity prices, had unnerved investors.

While most of the leading stocks racked up losses, Fyffes, Independent News & Media and CRH were among the hardest hit as dealers said many investors used the concerns as an excuse to take profits.

Shares in the fruit group lost eight cent, or 5 per cent, to €1.48 on the back of continued worries about the challenges facing its banana business. In contrast, Blackrock Land International, the property group spun off by Fyffes, made its debut on the Irish stock market yesterday. Despite the weaker overall trend, it closed at €0.40, 4.5 cent above its net asset value of €0.355.

Meanwhile, Independent New & Media shed 12 cent, or 3.8 per cent, to €2.37 as some of the recent bid speculation in the share price was unwound. CRH was another heavy loser, giving up €1.00 or 3.6 per cent of its value to €26.90.

Despite reporting solid full-year results, shares in DCC fell 20 cent to €19.20.

The banks did not escape the downward trend as AIB lost 26 cent or 1.4 per cent to €18.00.

Anglo was down 17 cent, or 1.3 per cent, to €12.70, Irish Life & Permanent shed 40 cent , or 2 per cent to €19.70 and Bank of Ireland was off seven cent, or 0.5 per cent, to €14.10.

Elan and Eircom were two of the few gainers in Dublin yesterday. Shares in the telecoms group rose by two cent to €2.15 as the company issued better-than-expected results which dealers said were unlikely to derail the Babcock & Brown takeover. Elan also gained ground, adding €1.00 or 8.85 per cent to €12.30.