Tullow Oil top performer of session while Iseq slips back

Iseq:2,444.02 (–79.99) Settlement date:September 12th

STARK NEWS on the euro front sent the markets back into free-fall yesterday, wiping out a chunk of the gains that were made during what turned out to be just another bounce earlier in the week.

Dealers said all European markets were weak this morning, following a fall around the close in the US on Thursday night.

The announcement that European Central Bank board member, Juergen Stark, is leaving his post early in a row over the bank’s bond-purchasing policy helped ensure that already jittery investors took fright altogether.

In Dublin – and London – the clear star performer was Tullow Oil, which announced a significant oil find off the coast of French Guiana.

It closed up 19.22 per cent to end the day at €16.50 on the Irish market as investors piled in. In London, where most of the shares are traded, it added over 15 per cent.

Another exploration group, Providence, also performed well in Dublin, adding over 9 per cent to close at €2.65.

Yesterday, was the second in a row that Providence outperformed the market. Dealers said there was no particular reason for this, other than the fact that it looked over sold.

Dublin’s biggest stock, building materials group, CRH, which has a large exposure to the US, fell more than 6.9 per cent to close at €11.06.

Traders pointed out that the group’s price tends to “overreact” to market movements. When the trend is up, it tends to move ahead of the market, and it tends to fall more behind when the market turns.

Another loser was low-cost airline, Ryanair, which shed 3.77 per cent to close at €3.04.

Also among Dublin’s heavyweights, packaging group, Smurfit Kappa fell 4.15 per cent to end at €4.62.