Negative day for bank stocks

The movement in Irish bank stocks today was described as “shockingly negative” by a Dublin broker.

The movement in Irish bank stocks today was described as “shockingly negative” by a Dublin broker.

Irish Life & Permanent lost almost 20 per cent of its value, while Bank of Ireland fell 13 per cent. AIB wasn't far behind, tumbling almost 11 per cent.

According to one broker, these movements confirmed the ongoing concerns of investors over sovereign issues surrounding so-called peripheral European economies including Ireland. These persistant concerns are hitting Irish financials particularly hard.

Aer Lingus was also a mover of note on the downside. Despite the strong numbers contained in its interim management statement this morning, the airline sold off in line with other Irish stocks and closed down more than 5 per cent, or six cent, to €1.11, albeit on very poor volume.

Compared to the dismal performance of most stocks on the Irish market, CRH held up relatively well. Nonetheless the cement giant, which has had a decent run of late, found itself under pressure after a positive start.

Building materials group Lafarge released results in line with expectations, which one broker said brought "more colour" and "a bit more visibility" to the sector ahead of CRH's trading statement due out next week. However CRH couldn't withstand the downwards pull on the Irish exchange today and fell 11.5 cent to €13.53.

Elsewhere, Glanbia saw strong volume but finished the day flat at €3.60.

Overall the Irish market was down about 2 per cent at 2,701.51.

Across Europe the FTSE 100 index was 0.2 per cent higher, Germany's DAX gained 0.3 per cent and France's CAC 40 was flat.

Additional reporting - Reuters