B of I rises 8% while Iseq slides on downbeat day

Iseq: 2,825.17 (–27.23)

THE IRISH market joined in the European equity sell-off yesterday which was sparked by a slew of disappointing earnings updates.

Bank of Ireland provided one of the few bright spots on an otherwise downbeat day. Traders reported good interest in the stock as investors took comfort from the consortium of private investors named on Wednesday.

The bank’s share price rose about 8 per cent, less than one cent, to 10.9 cents.

“It’s encouraging that the stock finished on its high of the day,” one broker said, adding that the bank’s ability to attract private investment is positive for the country in general. “Ireland is definitely the first . . . of the peripherals that people are looking to invest in,” he said.

Ryanair shed 2.7 per cent, almost nine cents, to finish at €3.19 as the airline sector weakened after Air France and Lufthansa missed earnings expectations.

CRH lost ground in early trade after fellow building materials group Lafarge reported disappointing second-quarter results that highlighted the difficulties in the US construction market, which accounts for 40 per cent of CRH’s profits. The Dublin-headquartered cement giant recovered somewhat during the afternoon session, but still closed 11 cents off at €13.64.

Elan’s share price went into reverse, losing all of the gains made on Wednesday after it reported a 24 per cent jump in second-quarter revenues. The stock improved somewhat by the close, finishing at €8.25, but was still down 35 cents on the day.

European markets got a bounce in the afternoon when US markets opened and economic indicators including jobless numbers came in slightly better than expected.

However, this was not enough to lift the Iseq out of negative territory, and it ended almost 1 per cent down at 2,825.17.

Settlement date: August 2nd