Falling financials send market into tailspin

DUBLIN REPORT: Iseq: 4,283.32 (-162.32) Settlement date: September 10thFEARS ABOUT the macroeconomic outlook for the global economy sent the Irish market into a tailspin yesterday, as it lost 162.46 points or 3.7 per cent to fall back to 4,282.32.

The main movers on the day were financial stocks, which were down almost 6.5 per cent by lunch-time. Following their US counterparts, which fell back due to economic concerns, as well as European financial stocks, which suffered due to additional liquidity fears following the ECB's tightening of its funding rules, Irish banks went into a downward spiral.

Allied Irish Bankfinished the day down 52 cent or 6.2 per cent at €7.89, but had been off by as much as 9 per cent at one stage. Anglo Irish Banktumbled by 34 cent or 6.1 per cent to € 5.24. Irish Life Permanentcame off its lows earlier in the day to close down 33 cent or 4.8 per cent at € 6.46. Bank of Irelandalso recovered somewhat in the late afternoon, but still gave up 25 cent or 4.5 per cent to finish the day at €5.28.

Construction stocks were also hit yesterday, with all the major names dropping back.

CRHlost value throughout the day, closing down € 1.01 or 5.5 per cent at €17.21, while Kingspanand Graftonfared marginally better.

Kingspangave up 22 cent or 2.7 per cent to finish the day at € 7.79 and Graftonlost seven cent or 1.8 per cent to drop back to € 3.50.

Fears over consumer spending hit sentiment in bookmaker Paddy Power, which shed 65 cent or 4.6 per cent to finish at € 13.50.

Ryanairwas also hit by declining consumer confidence, closing seven cent or 2.7 per cent weaker on €2.57, while Aer Lingusfell 2.4 per cent to €1.59.

Recruitment firm CPLreported better than expected results yesterday, although its outlook for the current year looks poor. It fell three cent or 1.5 per cent to €1.92.