Irish stocks down across the board

MARKETS WERE weak everywhere yesterday, with continuing focus on sovereign issues bearing down on trade. National benchmark indexes fell in all of the 18 western European markets.

The FTSE 100 lost 117.9, or 2.1 per cent, to 5,533.87 at the close in London as all 101 companies in the gauge fell. The broader FTSE All-Share Index also retreated 2.1 per cent yesterday, while Ireland’s ISEQ Index sank 2.2 per cent.

DUBLIN

WITH MARKETS weak everywhere, Irish stocks were down across the board.

Cement manufacturer CRH saw good volumes though the stock was down in line with the sector. Despite some positives in the US, the company continues to face headwinds right across Europe. Its shares closed down 3.17 per cent or 48 cent yesterday at €14.68.

Packaging company Smurfit Kappa was weaker too, by 4.02 per cent or 22 cent, to close at €5.45.

The airlines also took a dip with Ryanair falling 3.78 per cent, or 15 cent, to €3.92 while Aer Lingus was down 3.24 per cent or three cent to €1.04.

Kerry Group outperformed the weak market, its ingredients business proving a defensive asset, but still finished fractionally in the red – off 0.69 per cent (25 cent) at €35.75. Rival food group Glanbia also held up well, closing just 0.66 per cent or four cent down at €6.20.

The Irish Continental Group was another to battle the trend though on low volumes. It closed down just 1.24 per cent or 19 cent at €15.10.

There were decent volumes in United Drug, with 2.7 million shares traded. Its stock was down 0.96 per cent or two cent to close at €2.07.

Kenmare also showed good volumes though, after the company’s stock placement last week, the share price remained weak, down 4.72 per cent or two cent at 42 cent.

LONDON

UK STOCKS tumbled, with the FTSE 100 Index recording its biggest two-day selloff since May, as banks slumped amid renewed concern the euro area has yet to contain its sovereign-debt crisis.

Barclays and Royal Bank of Scotland Group both slid more than 3 per cent as Spanish bond yields surged to a euro-era record amid a report that more regions in Spain may ask for aid.

Barclays tumbled 4.2 per cent to 152.55 pence, while RBS dropped 3.3 per cent to 197.9 pence and HSBC Holdings, Europe’s largest lender, declined 3.5 per cent to 514.6 pence.

Among insurers, Aviva slumped 6.6 per cent to 275.2 pence, and Prudential slid 3.6 per cent to 732.5 pence.

Mining companies also retreated with commodity prices after Song Guoqing, a member of the monetary-policy committee of the Peoples Bank of China, said the world’s second-largest economy may slow for a seventh quarter to 7.4 per cent in the three months to September.

Tullow Oil, the London-based Irish explorer with the most licences in Africa, slid 4 per cent to 1,373 pence after rival Marathon Oil paid $35 million to Africa Oil for interests in two Kenyan exploration projects.

EUROPE

EUROPEAN STOCKS plunged the most in three months as concern grew that Greece will default and more Spanish regions will follow Valencia in seeking a bailout.

BNP Paribas, France’s biggest lender contributed the most to a sell-off by a gauge of bank shares, sinking 5.5 per cent to €26.96.

Bankia advanced 7.6 per cent to €66.5 after earlier dropping as much as 9.6 per cent. UniCredit closed 0.2 per cent lower at €2.43, after tumbling as much as 7.5 per cent.

Philips climbed 5 per cent to €17.03 the biggest gain this year. The company reported an increase in second-quarter profit as chief executive officer Frans van Houten extended a savings program into a second year.

NEW YORK

US STOCKS failed to turn the tide, giving the Standard Poor’s 500 Index its biggest slump in about a month, on concern over Europe’s debt crisis and a slow down in China.

Bank of America and Citigroup dropped at least 1.3 per cent, amid a tumble in European lenders, as Spain’s 10-year bond yields surged to a euro-era high on bets more of its regions will ask for aid.

McDonalds slipped 3 per cent to $88.87. Chief executive Don Thompson, who took the helm earlier this month, has struggled to lure budget-conscious Americans with a new extra-value menu.

Apple, the world’s largest company by market value, lost 0.6 per cent to $600.86. Today, it will probably report profit grew 35 per cent to $9.86 billion, according to the average of analysts estimates compiled by Bloomberg.

Facebook dropped 0.8 per cent to $28.53. Executives will hold a conference call on July 26th to discuss second-quarter results. Sales probably rose 30 per cent to $1.16 billion in the June period, according to analyst predictions compiled by Bloomberg. (Additional reporting, Bloomberg)