'Vicious' day sees Ryanair lead market in 5.3% nosedive

IT WAS another disastrous day for the Dublin market yesterday as around €3 billion was wiped from the value of Irish shares…

IT WAS another disastrous day for the Dublin market yesterday as around €3 billion was wiped from the value of Irish shares.

In what one broker described as a "vicious" day, the Dublin market closed the day down 5.3 per cent, tumbling 259.14 points to 4,617.01, making it by far the worst-performing market in Europe.

Poor first-quarter results from low-fares airline Ryanair were the catalyst for the sell-off of shares.

Following the results, in which it posted an 85 per cent drop in profits in the first quarter to €21 million and predicted that it may make its first full-year loss since going public in 1997 if fuel costs remain high, the stock was sold off aggressively on opening and failed to recover during the day.

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The company's shares plunged more than 22.5 per cent as it lost 72.8 cent to €2.50.

Aer Lingus suffered on the back of Ryanair's results and its share price slipped back 23.9 cent to €1.311, a fall of 15.4 per cent.

Financial stocks were also under pressure from the start. Irish bank stocks fell in line with their European counterparts, but yet again the fall was much steeper.

Anglo Irish Bank was 12.65 per cent weaker as it shed 76.4 cent to €5.276.

Concerns ahead of AIB's interim results on Wednesday, with some brokers predicting that it may have bad debts of around €2 billion over the coming years, continue to weigh heavily on the stock. It saw 9.76 per cent wiped off the value of its share price as it dropped 80 cent to €7.40.

Bank of Ireland was 10.5 per cent weaker as it shed 59 cent to €5.01, while Irish Life Permanent dropped 47 cent, or 9.27 per cent, to €4.60.

Construction stocks fared little better. Grafton was off 7.74 per cent at €3.23, while CRH shed 35 cent to €16.45, a fall of more than 2 per cent.

Settlement Date: July 31st