Iseq 20 companies lose €34bn in value due to pandemic

Banks take largest hit with AIB and Bank of Ireland together worth less than €10bn

Not one stock has gained in value in the three-month period on the Iseq 20 index. Photograph: Dara Mac Dónaill

Not one stock has gained in value in the three-month period on the Iseq 20 index. Photograph: Dara Mac Dónaill

 

A total of €34 billion has been wiped off the value of Iseq 20 companies over the past three months as the Covid-19 pandemic spooked investors in global equities.

AIB and Bank of Ireland are the biggest losers, shedding 69 per cent and 65 per cent of their market values respectively. As a result, AIB’s market value has fallen by almost €6 billion while Bank of Ireland’s has dropped by €3.4 billion. Combined, the State’s two largest domestic retail banks are worth just €9.3 billion. Both institutions have suspended their dividend payments, following European Central Bank guidelines.

Not one stock has gained in value in the three-month period on the Iseq 20 index and the smallest loser by market cap is Greencoat Renewables, which has shed just 6.6 per cent of its value.

On the comparable UK index, the FTSE 100, 14 stocks fell more than 50 per cent, according to data from online broker IG. On the Iseq 20, 25 per cent of stocks had fallen by more than 50 per cent.

Underlying assets

Included in that group is baked goods company Aryzta, forecourt retailer Applegreen and Dalata Hotel Group which has fallen by just over 50 per cent and is now worth €492 million despite its underlying assets being valued at €1.5 billion.

IG’s data shows that, in the UK, cruise operator Carnival has suffered the largest drop of all stocks, falling more than 75 per cent in value. Aer Lingus-owner IAG has seen the value of its shares fall 68 per cent while easyJet has dropped 62 per cent.

Ryanair’s fall was considerably more modest with the Irish budget airline taking a 33.8 per cent hit, leaving it with a value of €10.6 billion. Cairn Homes, Glenveagh Properties and Total Produce were also in the top-10 losers shedding 41 per cent, 38 per cent and 33 per cent respectively.

While there were no Iseq 20 gainers in the period, the FTSE 100 has seen some stocks gain in value. Precious metals company Fresnillo has increased its value by 6 per cent in the three-month period, while miner Polymetal has risen by 42 per cent.