Market report:THE ISEQ was down nearly 2.4 per cent, or 134 points, at 5,486 at last night's close with what one broker called "indiscriminate selling" being the main feature.
Financial stocks were among the hardest hit as worries about the credit crisis persist and on the back of new concerns about capital requirements in a report from a US stockbroker and investment bank Keefe, Bruyette Woods Ltd which said Bank of Ireland and Anglo Irish Bank have lower Tier 1 capital, a measure of financial strength, than most European banks.
By 4.30pm, Bank of Ireland's share price had slumped by more than 6 per cent to €6.56 with more than three million shares traded. Anglo Irish was down 2.5 per cent to €7 as six million shares changed hands. AIB shed 45 cent to €10.75, while Irish Life Permanent was under pressure ahead of its first-half pre-close statement today. It also fell back considerably as it shed 60 cent, or about 6.4 per cent, to €8.75.
Construction stocks fared no better as they took their lead from the UK and European markets. CRH, which had traded as high as €19.40 at one stage, bore the brunt of the sell-off and it was nearly 6 per cent weaker as it shed €1.15 to €18.15.
Smurfit was also under pressure, dropping 17 cent to €5.10 on the back of profit warnings from two of Europe's biggest papermakers, Stora Enso and UPM-Kymmene Oyj.
Among the few positives on the day was biotech group Elan. Its shares continued to surge on Tuesday's positive Alzheimer's drug trial data and it was up 5 per cent, or 92 cent, to €19.10.
Shares in clinical research, pharmaceutical and biotechnology company Icon also surged following the company's announcement of plans to double its capital through a bonus share issue. It was nearly 8 per cent stronger at €47.50.
Settlement date: June 23rd
