Iseq slumps 4% as 'mild sense of panic' takes hold

DUBLIN REPORT: Iseq: 3,081.79 (-136.93) Settlement date: May 19thAS THE euro took a battering yesterday, plummeting to 18-month lows, markets across the board were down dramatically. The Iseq closed more than 4 per cent lower, broadly in line with other European markets, as concerns about the health of the euro-zone economies led to major sell-offs.

Traders remarked that the session got off to a poor start following late sell-offs in the US overnight. By mid-afternoon, a “mild sense of panic” had taken over, according to one Dublin trader, with almost all stocks ending the session in the red.

CRH, the largest constituent on the Iseq, lost a hefty 7 per cent, or €1.41 to close at €18.22; while Iseq heavyweight Ryanair shed 4.6 per cent to finish at €1.53.

Financials were particularly hard hit, in line with the trend across Europe, which saw almost all the major banking stocks sustain steep falls.

Focus fell on Irish Life and Permanent, which yesterday issued a fairly positive trading statement indicating that its businesses were generally performing in line with expectations. Nonetheless, the stock lost just over 6 per cent to finish at €2.39. AIB was the worst performer among the financials, losing 8 per cent, or 10 cent, to close at €1.24. Bank of Ireland held up slightly better, shedding 4.66 per cent to €1.53 as investors awaited details of the bank’s rights issue pricing.

Glanbia managed to add half a cent to finish at €3.03 as the market continued to weigh up the implications of the defeat of the plan to sell the company’s Irish dairy business to the Glanbia co-operative.

Reports about potential taxes on online betting failed to dent Paddy Power, which gained 25 cent to €26 as an interim management statement from rival Ladbrokes stated that profits in the first four months were broadly in line with expectations.