Iseq dips as investors sit out market turmoil

Iseq:2,694.68 (–2.43) Settlement date:November 17th

MACRO-EVENTS continued to dominate events in Dublin yesterday, as even a steady flow of Iseq-listed news and results failed to incite much investor interest.

Volumes remained extremely thin, as investors and fund managers continued to sit out the market turmoil.

The Dublin market mirrored the trajectory of its European peers, advancing in early trade as the market registered a much-needed sense of hope at the change in the Italian leadership announced over the weekend. However, this dissolved during the session after Italy was forced to pay a record interest rate on bonds at an auction.

In terms of market movers in Dublin, Bank of Ireland was one of the most actively traded following an interim management statement on Friday which showed some sign of recovery at the bank.

Despite reporting a 30 per cent rise in revenues compared to last year in the first nine months of the year, Kingspan saw very low volumes. Nonetheless, the insulation company finished up close to 1 per cent at €6.05.

Irish Continental Group closed up fractionally, after the company reiterated its view that results would be hit by higher fuel costs and lower passenger and freight numbers. ICG rose 0.3 per cent to €14.75.

Financial Services company IFG, which recently announced that talks on a possible takeover had ended, was one of the Iseq’s strongest performers ahead of an interim management statement later this week. It added 5 per cent to close at €1.05.

The bond markets remained extremely tense, with rising Italian and, worryingly, Spanish yields the focus of attention.

Irish two-year-bond yields hit 8.6 per cent following the Italian auction, but slid back to about 8.2 per cent in afternoon trading.