Financials hammered on 'get out of Ireland day'

Iseq:2,859.05 (-199.51) Settlement date:November 2nd

A BAD week for Irish banking shares got considerably worse yesterday, with Bank of Ireland the hardest hit of the stocks finishing down 25 per cent.

The Iseq index slipped by more than 6.5 per cent in a session that traders described as “Armageddon” and a “bloodbath” for the Irish financials.

Their poor performance had ramifications for other stocks on the Iseq, with traders apparently deciding it was “get out of Ireland day”.

Bank of Irelandfinished the day at €1.65, down 25 per cent, with about 25 million of its shares changing hands in Dublin.

AIBrecovered from a difficult morning's trading, having fallen by over 20 per cent at one point, to finish at €1.85, down 11.9 per cent. About 10 million AIB shares were traded in Dublin, with a further 20 million moving in London.

Irish Life and Permanentstruggled during the session, finishing down 10.6 per cent at €4.80.

Traders said it was difficult to put a finger on what had triggered the steep slide, but that comments indicating the National Asset Management Agency (Nama) may not begin its work for a number of months may have spooked the market. Elsewhere, the Iseq's largest stock, building supplies group CRH, slipped some 6.8 per cent to €17.06 following lively trading.

Elandropped 6.3 per cent to finish at €3.42.

Packaging group Smurfit Kappafell by 11 per cent to €5, Grafton Groupwas down 9 per cent to €3.18, C&Cfell 5 per cent and Ryanairfinished at €2.97, down 4.5 per cent.

There were a few positive performances to report. Independent News and Mediafinished up 2 per cent at €0.21, fruit importer Fyffesclimbed for the second successive day, to €0.39, and United Drugclosed up just under 1 per cent at €2.22.