Disappointment at the limited extent of the interest rate cut by the Federal Reserve drove Irish share prices lower, in line with the weaker tone on most international stock markets.
The continuing weakness on Wall Street after European markets closed does not augur well for prices today and many in the market believe that it will take a concerted round of interest rate cuts in the US, Britain and Germany to get stock markets out of their current malaise.
Share prices were down across the board but the fall in the index is distorted by a sharp fall in Elan shares in New York which accounted for a large chunk of the 1.6 per cent in the ISEQ. Banking shares predictably felt the brunt of the selling with AIB down 5p on 980p and Bank of Ireland 23p lower on £11.90. Industrials were also generally weaker, with CRH off 5p on 845p, Fyffes 8p lower on 115p and back to the level of the abortive Dole bid of four years ago, while Independent fell to 230p before recovering to close unchanged on 240p. Smurfit remained very weak and lost 5p to 100p while Jurys lost some of its recent gains in the wake of the Doyle takeover bid and lost 13p to 535p. Powerscreen found a new friend in Merrill Lynch which has given the share a "buy" tag, and the shares closed 2p firmer in London on 90p sterling.
In New York, CBT recovered some of its heavy losses and was trading over $2 firmer - Goodbody has cut its third-quarter earnings forecasts from 22 cents to 15 cents and the full-year forecast from 87 cents to 78 cents. "CBT is moving from a high growth era to a period of steady good earnings growth," says Goodbody.
Other Nasdaq-listed Irish stocks were weaker with Iona off over $1 1/2 at around $19, Esat down $1 3/8 on $33 5/8 and Elan down $2 1/4 on $70 1/2.
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