Dublin Report 2,951.06 at close (-65.47 points):The downgrading of Ireland's banking sector by credit rating agency Standard & Poor (S&P) yesterday weighed heavily on the financials today.
Banks were weak across the board in Europe, but the falls were amplified in Ireland.
AIB plunged almost 10 per cent, or 13 cent, to just under €1.22. while Bank of Ireland lost 5 per cent, 7 cent, to €1.31. Irish Life & Permanent wasn’t immune either, tumbling almost 6 per cent to €3.34.
“No-one was really willing to step up to the plate and buy banks and certainly not those getting ratings downgrades from S&P,” one trader said.
Construction stocks were also weak.
Index bellweather CRH came under pressure following negative commentary from its peers Caterpillar and Cemex, and fell 3.5 per cent on the day to €17.25.
Ryanair, the second-largest name in the index, was down more than 2 per cent at just under €3.35.
Elsewhere, exploration company Tullow Oil was off 4.6 per cent at £11.60 on the London Stock Exchange, having completed a successful stock placing this morning in which it raised £925 million.
Elsewhere, Smurfit Kappa slid 15 cent to €6.30 after announcing that it is in negotiations with rival paper group Mondi concerning a possible asset swap.
Defensive stocks such as food companies fared relatively well today. Aryzta gained about 1.3 per cent, almost 37 cent, to €28.27, while Glanbia added 2.5 cent to just under €2.67. Cider manufacturer C&C traded up by 1.42 per cent, or 4 cent, to €2.85.
Across Europe, London's FTSE 100 closed down 59.38 points, or 1.1 per cent, at 5,217.47, while in Frankfurt the DAX ended at 5,643.20 points, down 25.73 or 0.45 per cent. In Paris the CAC-40 index closed at 3,759.80 points, down 47.24 or 1.24 per cent.
(Additional reporting - Reuters)