Irish shares fall most since February as Brexit concerns grow

Irish shares fell the most in four months by early afternoon trading, underperforming the broader European market, as companies seen as exposed to Brexit among the most affected.

The Iseq index of Irish shares fell as much as 2.17 per cent during trading on Monday, following on from a steep decline on Friday, as investors became increasingly anxious about the outcome of next week’s UK referendum on EU membership.

As of 12.30pm, Bank of Ireland had slumped 3.7 per cent, while C&C was off 2.9 per cent, Irish Continental Group had lost 2.8 per cent and Ryanair had gen up 2.6 per cent as polls suggest the vote is too early to call.

The broader market had also moved off its lows, with the Iseq down 2.05 per cent at 6,100 points. The broader European market was also in the doldrums, with the Stoxx Europe down 1.5 per cent.

Investors are also bracing for the Federal Reserve’s rate decision this week and Chair Janet Yellen’s commentary afterward, as well as looking to Spain’s general election scheduled for June 26.

“There are many uncertainties, so we could continue seeing declines and touch new lows in the days to come,” said John Plassard, a senior equity-sales trader at Mirabaud Securities in Geneva. “Even though nobody is expecting a rate hike, everyone will look at what Yellen will say at the press conference. We are 10 days from the Brexit vote, and also days away from the election in Spain, while oil is lower and volatility is the highest in months.”

(Additional reporting, Bloomberg)