The modest scale of the rate cut from the European Central Bank and more negative economic figures from across the Atlantic left European markets sharply lower, and the Irish market was no exception with the ISEQ down almost 2 per cent.
The heaviest losses were suffered by the big banking stocks. More than 3.5 million Bank of Ireland shares traded as the price nose-dived 30 cents to €10.45, while AIB was 27 cents weaker on €12.35 in smaller volumes. Irish Life & Permanent lost 14 cents to €13.65 but First Active was unchanged on €3.50.
Industrials were also weaker with index heavyweight Elan down €2.60 to €56.50 in Dublin, although the shares were marginally firmer in New York in later trading. Smurfit traded in size after its interim results but was unchanged on €2.45, while CRH remained weak ahead of interims and closed down 25 cents on €18.90. Ryanair lost 13 cents to €11.21, while Green gained three cents to €7.13 after disclosing that it has continued its buy-back programme with almost 50,000 shares repurchased at €7.10.
It was not all downhill and Glanbia traded as high as €1.16 before closing six cents higher on €1.12 ahead of interim results next week that are expected to show a continued strong recovery. Irish Continental was 15 cents higher on €5.65 while IWP added five cents to €1.95.
On overseas markets, technology stocks were predictably lower as the Nasdaq fell sharply after poor consumer spending figures. Iona was trading 87 US cents lower on $15.72 by midday in New York while Smartforce continued to weaken and was trading $2 lower on $27.01 at the same time.
