Iseq slumps on dull day

European equities took a knock today amid concerns about slowing economic growth, with the Iseq index of Irish shares coming off worse than major European indices such as the FTSE, the Dax and the Cac.

The Dublin market closed down 1 per cent, shedding 29 points compared to the previous close.

The main driver, as ever, was the performance of the Iseq's largest component stock, CRH. The building materials company fell 3.3 per cent in trading to €15.45.

Ryanair and Aer Lingus enjoyed a better day as positive sentiment abounded in the airline sector. The catalyst was the announcement by German flag carrier Lufthansa that it had swung to a 2010 net profit of €1.1 billion, compared to a loss of €34 billion a year earlier.

The Lufthansa figures, which beat analysts' expectations, buoyed Ryanair, which finished up almost 1.8 per cent to €3.45.

Aer Lingus also did well on the back of the Lufthansa numbers, climbing 7.1 per cent to 90 cent.

Food group Greencore advanced almost 2.6 per cent to €1.20, a rise of 3 cent, after it announced that it would not be pursuing a new bid for Northern Foods following the rival bid by Boparan.

Dealers noted there was a sense of relief among investors that the company did not go ahead with a fresh bid that might have been a stretch too far for it.

There were mixed fortunes for the banks, with AIB under pressure again. It plunged 3.85 per cent to 25 cent. Bank of Ireland, meanwhile, was pretty flat, closing at 30 cent.

Irish Life & Permanent closed up 2.6 per cent at 79 cent, 2 cent higher than the previous day. The stock has endured a poor fortnight's trading.

Elsewhere, food group Kerry fell just over 1 per cent to €26.90, down 29 cent. But it was, on the whole, a day of little excitement for the Irish market.