Bank of Ireland’s half-year results failed to lift the Irish market today, as the bank reported worse than expected profits. Overall the Iseq fell by 55.75 points, or 2.0 per cent, to drop back to 2,674.86 in a day of light trading volumes.
Bank of Ireland’s poor results did not please the market and it fell back by 11 cent, or 8.3 per cent to €1.21, while the decision to scrap its dividend led to a sell-off amongst dividend funds.
Irish Life & Permanent also suffered today, following its removal from the Dow Jones Global Select Dividend Index. It lost 21 cent, or 11.0 per cent, to close down at €1.70.
Anglo Irish Bank was also down on the day, giving up 22 cent, or 11.3 per cent, to finish at €1.73.
The outperformer amongst the banks was AIB, which gained 8 cent, or 2.8 per cent, to climb to €2.98 on the back of strong interest from a foreign buyer.
Outside of the financials, the big news was at Kerry Group, and its interim management statement (IMS) beat expectations leading to an upgrade at Davy Stockbrokers. Nevertheless, the stock finished the day flat, closing at €16.80.
In its IMS, Paddy Power held its full-year earnings guidance at €75 million, but a downgrade from Davy saw the stock lose 80 cent, or 6.2 per cent, to finish the day down at €12.20.
It was a better day for drinks group C&C, as the market continues to respond to its new management team and one broker suggested that the bottom has now been reached for the stock. It closed up by 1 cent, or 0.7 per cent, at €1.38.
Grafton Group added 6 cent, or 2.3 per cent, to climb to €2.65, while Ryanair also closed up on the day, gaining 3 cent, or 1.2 per cent, to advance to €2.90.
In the US, energy shares dropped to their lowest levels on record, boosting demand from investors, while big-name hedge fund managers, including George Soros, defended their industry's practices and profits before Congress. However, poor employment data saw the S&P 500 fall to levels last seen in 2003.
By 1.05 pm, the S&P 500 had given up 3.5 per cent to fall back to 822.83, while the Dow Jones Industrial Average had fallen back by 300.20 points, or 3.6 per cent, to 7,982.46.
Across Europe, stocks fell for a third day as bank shares continued to drag down indices. The Dow Jones Stoxx 600 Index dropped by 0.6 per cent to fall back to 204.1.
In the UK, Barclays Bank gave up 6.2 per cent, and the FTSE 100 closed 13 points lower at 4,169.21, a loss of 0.3 per cent.
In Germany, the DAX dipped by 0.6 per cent, while in France, the CAC 40 increased by 1.1 per cent.