Noonan insists no sense of panic as Irish shares fall sharply

Minister for Finance Michael Noonan has insisted there is no sense of panic in Ireland over the British exit from the European Union.

Mr Noonan’s comments come as Irish stocks suffered another sharp sell-off on Monday, faring much worse than either the London or broader European markets.

The Iseq index was down 5.5 per cent in mid-morning trading, having lost 7.4 per cent on Friday. By contrast, the FTSE 100 in London was down just 2.7 per cent, following a 7.3 per cent decline on Friday. The broader European market, as measured by the Stoxx 600 index, was down 1.4 per cent.

Analysts also turned negative on Monday on a number of Irish shares as the Brexit shock continued to play out, with Ryanair, C&C and Kingspan – all highly exposed to the UK market – left reeling as a result of broker downgrades.

Mr Noonan said the shock at the decision of the British people had been contained and the initial signs showed exports here were still performing strongly.

Mr Noonna said: "It is very hard to say what the ultimate effect of Brexit will be because it depends on the alternative arrangement which is put in place.

"If something like the arrangement in Norway was put in place then you are looking at very little downside.

“But if it becomes an arrangement of tariffs and inhibitions of exports and imports and interference with common travel areas and labour markets, well then the effect could be profound.”

Speaking on his way into a national economic dialogue meeting Mr Noonan said it was impossible to estimate or calculate what the effect will be for Ireland until that arrangement was agreed.

His Cabinet colleague and Minister for Education Richard Bruton said Ireland will be in a pivotal position in the UK's Brexit negotiations with the EU.

"We are making sure that we have strong contacts in Europe, strong contacts within Britain, that we work together. We will now be in a pivotal position in that we will be a voice that understands both sides in this."

The Minister told RTE's Morning Ireland the Irish Government had planned for the diplomatic task ahead. He said Ireland was well-positioned and resilient and would manage the risks ahead very carefully.

When asked about David Cameron’s resignation he said it was important to see responsible leadership emerging in the UK as there is a political vacuum there at present.

“We know our priorities. We want to protect the single market. We don’t want to see tariffs or Britain being locked out of markets - on the trade front we want to see as open a relationship as possible, in relation to the free movement of people and trade and energy.

“It’s very important Britain comes to the table with a clarification of these areas.”

Mr Bruton said that Ireland will be seeking to negotiate a new agreement between the UK and the EU that will ensure that the flow of the market is not disrupted.

“There is a lot at stake here.”