Dublin report:The Iseq plummeted by 1.5 per cent yesterday as a host of leading stocks tumbled in line with the rest of Europe on the back of bad news from across the Atlantic.
Investors throughout Europe were concerned by profit warnings from a number of US stocks including Home Depot and Sears, as well as worries over the sub-prime mortgage market.
Despite little local stock-specific news, the Iseq got off to a bad start from which it failed to recover. A lack of liquidity in some stocks tended to exacerbate the issue.
The financials bore the brunt of the pressure yesterday, reflecting general concern over the property market in Ireland.
Irish Life & Permanent ended the day nearly 4 per cent down, eventually losing 72 cents to end the day at €18.20. AIB was nearly 2 per cent weaker as it shed 41 cents to close at €20.39. Bank of Ireland was also down, dropping 10 cents to €14.92.
Although it has no exposure to the residential property market, Anglo Irish Bank was caught in the general financial tailspin and finished off 43 cent at €14.42.
CRH was also under pressure on the back of the Home Depot profit warning. The largest US home improvement chain cut its 2007 earnings outlook, citing fall-out from the housing slump. CRH was more than 2 per cent weaker, as it shed 77 cents to €37.33.
Other construction stocks were also big losers. Kingspan lost 50 cents to close at €20. McInerney was down seven cents to €2.18 as concerns over interest rate rises in the UK weighed it down.
Despite a positive trading statement, Glanbia closed the day six cent lower at €3.96.
Ryanair, which yesterday said it would sue the European Commission over state aid to European rivals, was off seven cents at €5.12.
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