Negative sentiment in US drags down Iseq 1.5%

Market Report: Dented again by weak markets overseas, the Iseq fell 1.5 per cent yesterday to end the week at its lowest level since the middle of February. The general negative sentiment started in the US after a raft of poor economic data and failed to lift, a dealer said.

Building materials group CRH, which is heavily exposed to US markets, was one of yesterday's main victims, dropping 66 cent, or 2.3 per cent, to end the day at €27.90. The banks also fared badly, with Anglo Irish, one of the day's busiest stocks, leading the way.

The shares fell 31 cent, or 2.4 per cent, to close at €12.87. More than 22 million shares changed hands as one broker reported a spate of strong selling had come to an end. He said he expected to see increased demand for the stock next week at its current levels. Irish Life & Permanent was also badly hit, dropping 40 cent, or almost 2 per cent, to end the day at €20.10.

Elsewhere, Bank of Ireland closed down 27 cent, or 1.9 per cent, at €14.17, while Allied Irish was off 19 cent, or 1 per cent, at €18.26.

Shares in Tullow Oil dropped almost 4 per cent after the exploration group said it had been forced to abandon two wells in Pakistan and Gabon after drilling failed to yield positive results. The stock was down 25 cent, at €6.10 in Dublin, and more than 5 per cent in London at 411.75 pence.

Despite all the negative sentiment, Eircom held steady and ended the day little changed, even after the group said it would bring forward the publication of its annual results by 10 days, a move onlookers said signalled that a deal with Australian investment firm Babcock & Brown may be imminent. The stock closed down 1 cent, or half a per cent, at €2.13. More than 4 million shares changed hands.

Other stocks dragged down by the negative sentiment included C&C, which fell 12 cent, or 1.7 per cent, to close at €6.78. In a statement, C&C said its finance director Brendan Dwan had sold 250,000 shares.