Iseq lower as Anglo Irish warns of need for caution

DUBLIN REPORT:THE ISEQ was sent hurtling downwards yesterday as Anglo Irish Bank said it would write down more than 25 per cent of the value of its structured investment vehicle assets and spoke of "a high degree of caution" in selecting new business in light of the deteriorating US economy.

Its pre-close trading statement sent the stock plummeting 9.4 per cent to €8.68 before recovering some ground to close off 61 cent on €8.97, with five million shares trading.

The other banks fell in sympathy with Anglo and with negative sentiment on world equities markets.

Weak US housing data did little to alleviate concerns about the American economy, while a hawkish statement from the European Central Bank disappointed those looking for an imminent cut in interest rates.

Bank of Ireland fell 3 per cent yesterday, with AIB and Irish Life & Permanent both slipping 2 per cent.

CRH, meanwhile, fell 64 cent to €24.56, but this didn't erase all of Wednesday's gains.

On a day when the Iseq fell almost 200 points, there were plenty of casualties to be found.

Among them was building group McInerney, which produced 2007 results in line with forecasts but didn't convince the market with its outlook statement. The stock actually fell more in percentage terms than Anglo Irish Bank, dropping 14 cent to €1.30.

There was heavy trading again in Independent News & Media, with more than 12 million shares changing hands.

While the oil companies advanced, Ryanair fell 11 cent to €3.15, down 3.37 per cent.

Following "poor" full-year results earlier this week, Davy Research cut its forecasts for Readymix due to the weak 2008 trading environment. The stock fell 3 cent to €1.57.

ISEQ: 6,182.22 (-196.19)