Iseq regains some ground but closes with losses

DUBLIN REPORT: Iseq:2,398.33 (-30.70) Settlement date:May 1st

EUROPEAN MARKETS were down across the board yesterday, depressed by swine flu fears and nerves over the outcome of US banking sector stress tests.

The Irish market had a mixed bag, brokers reported, dipping during the morning session, but recovering somewhat in the afternoon to close at 2,398.33, a fall on the day of 1.2 per cent.

Banking stocks had a fairly negative day, which one broker attributed to fears over financials globally.

AIBtumbled almost 10 per cent to close at just under €0.76, while Bank of Irelandfell almost 5 per cent to €0.61.

Irish Life & Permanentbucked the trend, however. Despite touching €1.50 at one point, the stock had traded up to €1.75 by the close, a gain of 11 cent, making it one of the few financials across the UK and Ireland to gain ground yesterday.

Aer Lingusplummeted by 19 per cent – or 13 cent – to 56 cent after it warned that it is facing into an "exceptionally tough" trading environment.

The negative impact of this statement was exacerbated by fears over the spread of swine flu.

Ryanairalso succumbed to the malaise gripping the travel industry since the outbreak of swine flu, falling 18 cent to €3.12.

The Iseq index's largest component, CRH,managed to buoy the market somewhat, climbing almost 9 cent to €17.48.

However, the cement giant was one of the few winners on the exchange.

Food stocks were all off, with Aryztafalling 80 cent to €20.70 and Kerry Groupmarking down 5 cent to €14.35.

Elsewhere, United Drugclosed down 6 cent at €1.92, while Independent News & Mediaclosed at €0.25, down 7 per cent.

Paddy Powerlost ground again yesterday, falling 55 cent to €13.69.