Sharpest Iseq fall of the month

The Iseq had its sharpest fall of the month today as fears of a world recession deepened following a warning from the Fed and the International Monetary Fund.

The benchmark index of Irish shares finished 3.23 per cent down at 2,365.5 on a day that saw leading stocks heavily sold in the wake of the Federal Reserve's warning that the US economy faces "significant downside risks".

The Dow Jones Stoxx Europe 600, which measures leading stocks in 18 western European markets, fell 4.6 per cent to 214.89, a two-year low as fears that the global economy is set to tip back into recession gripped investors.

In London, the benchmark FTSE 100 index plunged 4.5 per cent to 5041.61.

In contrast to earlier in the week in Dublin, when volumes were light, trading in the market's leading stocks was at or above normal.

Unfortunately, there was more interest in selling than buying.

Its biggest stock, international building materials group, CRH, which accounts for over 20 per cent of the main index, tumbled by 5.82 per cent to close at €10.515, one of its lowest closing quotes of both the month and the year to-date.

Another multi-national, packaging group, Smurfit Kappa, was also punished. It fell 6.25 per cent to €4.50.

Low-cost airline, Ryanair, got away lightly. It ended the day 0.5 per cent off at €2.98, but it was down almost 1.9 per cent earlier in the day before rebounding.

Titanium miner, Kenmare, lost almost 11 per cent of its value to finish at 44.9 cent, mining and resource companies were badly hit across Europe today.

The food sector lost some of its attraction for investors as well. Kerry was off 2.9 per cent at €25.085 and Glanbia was down 5.23 per cent at €4.35.