Iseq down on Middle East tensions

The Iseq index marked down in line with European peers today as tensions in the Middle East put a “kibosh” on stock markets…

The Iseq index marked down in line with European peers today as tensions in the Middle East put a “kibosh” on stock markets.

A Dublin trader noted that buyers are staying out of the market because of "big macro fears", primarily that the current unrest in Libya will spread to other countries in the region. Investors are reluctant to commit capital when there is so much uncertainty, he said. "That was a feature across all of Europe today. Buyers are staying on the sidelines until there is a bit of clarity on the situation."

The Dublin market was down for most of the day, although a number of stocks bucked the trend. Kerry Group got the Irish corporate reporting season off to a good start today with a set of 2010 results that surprised analysts on the upside. One broker noted that the company is "really starting to fire on all cyclinders now", having delivered growth on both the food and ingredients sides of its business. The stock gained more than 3 per cent, or 85 cent, to finish at €26.25.

Dragon Oil also provided the market with good news when it released preliminary results for 2010. The stock also benefited from the spike in oil prices, as it concentrates on production, according to one trader. Dragon rose almost 17 cent to €6.75.

CRH fell after its peer Wienerberger reported numbers today. Although the overall results were positive, Wienerberger was cautious on the US market, where CRH has a large exposure. The Dublin-headquartered company fell more than 3 per cent, or 51 cent, to €16.26.

Overall the Iseq was off more than 1 per cent at 2,923.47. Across Europe, the UK's FTSE 100 Index fell 0.3 per cent and France's CAC 40 sank 1.2 per cent

Additional reporting - Bloomberg