Iseq: 2,977.24 (–24.58)

STOCK MARKETS were sluggish across Europe yesterday, with the Iseq slipping almost 1 per cent and all of the major European indices losing ground.

The US Federal Reserve offered a subdued assessment of the US economy on Wednesday, which put pressure on equities for a second consecutive day.

As investors’ fears about Greek debt markets reintensified, financial stocks were weak across Europe and the Irish banks were no exception. Bank of Ireland fell 3.6 per cent to 72 cents, while AIB fell 1.4 per cent to 98 cents.

The latter stock may see some movement next week if reports that PKO Bank, which is controlled by the Polish state, intends to submit an offer for AIB’s Polish interests come to fruition.

Irish Life Permanent was the least hit of the three, closing flat at €1.65. Trading volumes continued to be relatively light.

Building materials group CRH, the largest component stock on the index, could not overcome softness in the cement sector and fell 1.5 per cent to €18.09.

This follows the publication on Wednesday of new home sales data in its US market that were well below analysts’ expectations.

Paper and packaging group Smurfit Kappa also had a poor day, falling 1.3 per cent to close at €7.57 on a day in which its peer, DS Smith, published a relatively muted trading update.

Ryanair closed down only marginally at €3.62. Airline analysts at NCB said that its announcement earlier in the week that it is reopening its base in Valencia, Spain, demonstrated the airline’s strong bargaining power with airports following the recession.

Meanwhile, Aer Lingus climbed 2.7 per cent on the day, finishing at 79 cents.

Elsewhere, there were climbs for food group Greencore and drinks company CC, but falls for Glanbia, Kerry and Aryzta.

Settlement date: June 29th