Iseq closes in the red on light volumes

After a bright start to morning trading where it bucked the trend among European markets by making modest gains, the Iseq slipped…

After a bright start to morning trading where it bucked the trend among European markets by making modest gains, the Iseq slipped into the red in the afternoon.

By the close of business, the Dublin market had drifted down in line with most other European markets and eventually closed nearly 0.9 per cent weaker, losing 38.75 points to 4,321.23.

However, with the UK market closed for a holiday and investors thin on the ground ahead of a slew of corporate results for Irish-listed companies this week, volumes were extremely thin.

"It was the calm before the storm," said one broker.

On the news front, Glanbia's acquisition of US-based Optimum Nutrition, a leading manufacturer of nutritional supplements for the sports sector, in a deal worth $315 million (€213 million) was very well received by the market. Glanbia's shares surged by nearly 7 per cent at one stage before closing the day 6 per cent ahead as it added on 26 cent to €4.61 on the back of the acquisition. However, volumes were thin enough with just under 180,000 shares traded.

Elsewhere, volumes were also low in CRH and Kerry, both of which report tomorrow. Kerry tacked on 15 cent to €19, while CRH finished down on the day as it shed 23 cent to €16.78.

It was a mixed day for banking stocks. Anglo Irish Bank closed the day marginally ahead as it edged up 2 cent to €5.42. Bank of Ireland was 1.7 per cent stronger at €5.35. After spending the morning in positive territory, AIB eased back a little in the afternoon and was 4 cent off at €8.18 by the close of business. Irish Life & Permanent was more than 2 per cent weaker, losing 11 cents to €5.14.

Around Europe stocks fell, led by banks and builders, as concern grew that credit losses would spread and the economic slowdown would deepen.

National benchmark indices fell in 15 of the 17 western European markets that were open. Trading was lighter due to the UK market being closed for a holiday. France's CAC 40 declined 1 per cent, while Germany's DAX fell by 0.7 per cent.