Iseq:The Iseq index spiralled downwards in line with its European peers today, as macro-economic concerns spooked investors.
The US Federal Reserve downgraded its economic outlook yesterday, and the reverberations of this rippled through European bourses today.
Banking stocks led European markets lower, but Bank of Ireland bucked this trend despite reporting a pre-tax loss of more than €1.246 billion in the six months to June. Although the stock shed about half a per cent to 84 cent, this compared relatively well to a drop of over 3 per cent across the sector in Europe.
“There was nothing really to be particularly disappointed or happy about in its [Bank of Ireland’s] numbers,” one Dublin broker said.
AIB also fared better than many European banks, shedding a little over 1 per cent, or one cent, to 85.5 cent.
The relative outperformance by the two banks was notable given the underperformance in Irish bonds today. “It’s surprising to see Irish banks do well when the Irish sovereign is weaker, as the Irish sovereign is backing the Irish banks,” the broker said.
All economically sensitive sectors found themselves under pressure on the day. Airlines struggled, with Aer Lingus and Ryanair slipping seven cent and almost 17 cent to 90 cent and €3.73 respectively.
In the construction sector, CRH lost almost 70 cent to close at €15.51. Elsewhere, packaging group Smurfit Kappa failed to get much uplift from a strong set of quarter two results released today. The stock closed at €7.65, down about 2.5 per cent, or 19 cent.
Across Europe, Ireland’s Iseq, Britain's FTSE 100, Germany's DAX and France's CAC-40 declined 2.1 to 2.7 per cent.
Additional reporting - Reuters
