Volatile markets lead to up and down day Iseq

Volatile conditions on the financial markets fed through to Irish equities today, as sovereign health concerns weighed on investor sentiment.

"It was a real up and down day. But mostly down," said a Dublin-based share dealer.

Having opened weaker, there was some respite for equity values in the early afternoon, but Standard & Poor's downgrade of Spain in the final half hour of trading meant most stocks finished in negative territory.

After a 4.5 per cent fall yesterday, the Iseq index of Irish shares fell 2.5 per cent today, underperforming the major European indices.

The financial stocks were subject to the most accentuated swings, but the final losses were more modest than they were after yesterday's nervy session.

Bank of Ireland finished down 2.5 per cent at €1.67, shedding 4 cent, while AIB fell 1 cent to €1.44. Irish Life & Permanent dropped 2.6 per cent to close at €2.97, down 8 cent.

It was a weak day for the airlines, with Aer Lingus dropping 6 per cent to close at 68 cent and Ryanair down 2.9 per cent at €3.67, as sellers offloaded stock.

It was the performance of building materials group CRH, the largest stock on the Iseq, that dragged down the Dublin market. CRH fell 3.2 per cent to €19.70.

Industrial holdings group DCC was among the stocks that were under pressure and it closed down 1.5 per cent at €19.62. But it was "a tough day" across the board, dealers noted.

After a bit of trading action earlier in the week, food group Glanbia had a quieter session, with the stock 1.3 per cent at a price of ¤3.06.

Fruit importers Fyffes, building group McInerney and paper and packaging company Smurfit Kappa were among the few climbers on the day.