Global sell-off drive stocks down as Iseq sheds 1.5%

Iseq:2,900.25 (–43.28) Settlement date:July 14th

THE ISEQ index got caught up in the global market sell-off yesterday, tumbling by about 1.5 per cent as investors were rattled by European debt contagion fears.

A barrage of negative news in the marketplace created headwinds for equity markets across the globe, as fears grew that Italy could be the next domino to fall in the euro zone sovereign debt crisis. Last Friday’s dismal US jobs report and data showing that China’s inflation level remained high, also weighed on markets.

A number of the Iseq’s constituent stocks recorded double-digit falls. Bank of Ireland, which held its extraordinary general meeting yesterday and announced details of a rights issue on Friday, fell by almost 13 per cent. However, the stock is trading at such low levels that this equated to a fall of just 1.5 cent, leaving it at 10.1 cent.

Also in the red was Independent News Media, which finished almost 10 per cent lower, or 4.5 cent, at 43 cent.

Builders merchants and DIY retailing group Grafton was also out of favour as new figures showed that construction activity in Ireland continued to deteriorate in June. Coming on the heels of the group’s disappointing results released last week, this indicator appeared to knock the stock, which closed almost 8 per cent lower, or about 24 cent, at €2.81.

Recruitment group CPL Resources failed to get a boost after international jobs agency Michael Page released first-half numbers that were in line with expectations. CPL closed flat at €2.70.

Drug manufacturer Elan was among the few winners on the day, gaining more than 4 per cent, about 36 cent, to close at €8.58.

Glanbia gained almost 3 per cent, or 13 cent, to finish just shy of €5.00.

Overall the Iseq index fell 43.28 points to 2,900.25.