Iseq drops 4% on a day of volatile trading

DUBLIN REPORT:THE IRISH market closed down almost 4 per cent yesterday, dropping by 203.1 points to 4956.63, on a day which was characterised by its volatility. The Iseq opened strongly but fell in the afternoon on the back of weak US markets, writes Fiona Reddan.

After very strong performances the day before, financials suffered a big sell-off, as Irish banks followed the lead of their struggling European counterparts.

Irish Life Permanent gave back all of its gains from the previous day, falling by more than 9 per cent to €5.35, down by 55 cent, although trading was light.

Bank of Ireland fell by 4.2 per cent or by 26 cent to €5.90, while both Anglo Irish Bank and AIB closed down around 2 per cent on the day. Anglo fell by 2.3 per cent or 15 cent to €6.58, while AIB was down almost 2 per cent or 16 cent, to €8.50.

Worst performer on the day was the Smurfit Kappa Group, which declined by over 15 per cent, or 64 cent to €3.41.

Building and construction stocks have been riding high over the past week, but were hit hard yesterday as UK home improvement retail group Kingfisher came out with cautious comments on the UK building sector.

Kingspan was the worst hit, as it dropped by 10.3 per cent, and its share price fell by 77 cent to €6.73. Grafton Group was down 6.1 per cent 24 cent to €3.71, while CRH fell by almost 5 per cent, or 89 cent, to €17.15

Outside of financials, volume was light and despite good guidance from Dragon Oil and Elan, both stocks fell. Dragon was down almost 1 per cent, or 3 cent to €3.66, while pharmaceuticals firm Elan fell by almost 9 per cent, or €1.95, to close the day at €20.12.

Shareholders of food group IAWS yesterday approved its merger with Swiss bakery group Hiestand, but its share price still fell, down by almost 4 per cent, or 56 cents, to €14.96.

Iseq: 4956.63 (-203.10) Settlement date: July 29th