Financials suffer as Iseq sheds previous gains

DUBLIN REPORT: Iseq:3,076.78 (–44.96) Settlement date:June 25th

IT WAS another quiet summer’s day on the Irish Stock Exchange yesterday, although the UK’s emergency budget made an impact on some stocks. Overall, the exchange lost 44.96 points, or 1.4 per cent, to close the day at 3,076.78.

Buoyed by the UK budget, in which a lower than expected increase in capital gains tax was announced, building supplies group Kingspan advanced 19 cent, or 3.2 per cent, to climb to €6.19.

Media group Independent News & Media was also up on the day, adding two cent, or 2.2 per cent, to close the day at € 0.90, on the back of news that Denis O’Brien has increased his stake in the group to 20 per cent.

Following the UK government’s decision not to reform the airport passenger duty system at present, Ryanair finished the day largely flat, having added 1 cent, or 0.3 per cent, to close at €3.67.

Drinks group C&C will have been pleased that UK chancellor of the exchequer George Osborne said that he will reverse a planned increase in cider duty. The stock added six cent, or 1.8 per cent, to close at €3.34.

Smurfit Kappa continued its move of the last few weeks, adding 10 cent, or 1.3 per cent, to advance to €7.90, as sentiment in the stock received a boost when ratings agency Fitch reaffirmed its outlook on the stock as stable.

Irish banks were weak all day, as the Financial Regulator stepped up its tough stance rhetoric.

Bank of Ireland, which lost eight cent, or 8.8 per cent, in a day of heavy trading in the stock, to finish the day at €0.78.

The other financial stocks were weak also, with AIB down by eight cent, or 7.1 per cent, to close down at €1.03, while Irish Life & Permanent gave up 11 cent, or 6.3 per cent, to finish down at €1.69.

CRH was also down on the day, dropping € 0.60, or 3 per cent, to finish on € 19.08.