DUBLIN REPORT: Iseq: 3,097.86 (–25.63) Settlement date: March 25thTHE ISEQ index of Irish shares fell almost 1 per cent yesterday, underperforming even the sluggish performance by most European equity markets.
Stock markets faltered as an official from the International Monetary Fund (IMF) declared that advanced economies faced “acute” challenges in tackling public debt. Bank stocks led the way down.
Another weekend of media reports suggesting the haircuts on National Asset Management Agency (Nama) loans would be higher than the originally anticipated 30 per cent also contributed to a fall in the price of banks, as did speculation about the capital levels that would ultimately be required.
AIB’s share price fell 5.1 per cent to €1.49, while Bank of Ireland dropped 2.95 per cent to €1.24. Goodbody Stockbroker banking analyst Eamonn Hughes noted that it was now “getting to crunch time” on Nama: next week is expected to be a key week for the toxic loans agency.
There were diverging fortunes for the airline stocks, Aer Lingus and Ryanair. The flag carrier climbed 2.5 per cent to 60 cent, as analysts commented that a potential reballot of cabin crew would be positive for shareholders in the stock. Ryanair slipped 1.9 per cent to €3.43.
Building materials group CRH fell 1.4 per cent to close at €18.60, as one of its peers in the building sector, Wolseley, reported declining profits and a cautious outlook on non-residential markets.
Elan shook off negative news on its PML drug to rise 2.26 per cent to €5.57, while ferries company Irish Continental Group attracted above average trading ahead of its full-year results today. It closed up 1 per cent at €15.45.
The big results of the week will be from Independent News Media on Wednesday. Dealers expect the company to make an announcement on the sale of its London Independenttitles.
