DUBLIN REPORT: Iseq:3,364.94 (-42.51) Settlement date:April 27th
THE ISEQ was down in line with the rest of Europe yesterday, as markets fell amidst renewed concerns about Greece’s finances after the EU raised the country’s budget deficit.
The revelation that Ireland had the largest budget deficit in the euro zone and the widening of bond spreads, weighed on the Irish market, which ended nearly 43 points off.
However, traders noted a certain amount of profit-taking was at play and that market weakness was unsurprising in light of the positive run enjoyed by the market of late. The imminent Bank of Ireland rights issue which will potentially put a drain on cash in the marketplace, one analyst said.
In light of the sharp falls sustained by financial stocks in Ireland and further afield, Bank of Ireland did considerably well yesterday, finishing off just over a half a per cent at €1.81, after the bank confirmed it had begun talks with investors to raise capital, which would see the State remain a minority shareholder.
AIB lost 3.5 per cent to close at €1.50, while Irish Life & Permanent shed 4.8 per cent to close at €3.10. As the Icelandic saga receded and focus switched to compensation, airlines failed to make significant gains. Index heavyweight Ryanair slipped 2 per cent, but Aer Lingus managed to rise fractionally to close at €0.72.
Building group Grafton was one of the few winners yesterday, climbing 3 per cent to €3.45, on a day when others in the sector fell back. CRH, the largest constituent on the Iseq, fell by 1.4 per cent to €20.20, while insulation providers Kingspan slipped 2.8 per cent to €6.95.
Other movers included exploration firm Dragon Oil, which rose 3 per cent to €5.63 after reporting a 9 per cent increase in daily oil output in the first quarter and announcing it had agreed a short-term crude swap deal with Iran.
