Iseq dragged down by bank stocks

After a respectable run on Monday when many European exchanges were on holidays, the Iseq index of shares ended the day down 113.72 to 6,375.

As has been the pattern in recent days, volumes traded in most shares were well below their usual levels.

Traders said sentiment towards British banking stocks drifted across the Irish Sea with Bank of Ireland hit hardest – possibly because of its exposure to the UK mortgage sector. It closed at €8.80, a loss of 4.35 per cent.

Other financial stocks out of favour in Dublin yesterday were Allied Irish Banks, which lost 3.73 per cent to close €13.42, and Anglo Irish Bank, which dropped in value by 2 per cent to finish on €9.31.

There was mixed fortunes in the food sector. Greencore was a big faller, down 8.03 per cent €3.54 - which traders related to a couple of poor forecasts from peers in the UK food retail sector.

Kerry was the big winner, up 2.78 per cent to €19.94, following a statement at its AGM yesterday that said revenues had grown 7.5 per cent in the year to date.

While the financials fared poorly in London fresh merger speculation buoyed the mining sector. The FTSE 100 closed at 6,211.90, a drop of 8.70. There was slightly better news in Europe where France’s CAC 40 was up 22.46 to 4,998.67, and Germany’s DAX gained 24.24 to 7,060.19.

In the United States, stocks fell after the world’s biggest retailer, Wal-Mart, gave a disappointing outlook, and the price of oil headed further into record territory.

© 2008 ireland.com