WITH the London market slumping to a three month low on the back of weak futures, the Dublin market closed sharply lower with most of the losses concentrated on the leaders.
The British construction materials sector was depressed and this largely accounted for a 9p fall by CRH to 632p while both of the big banking stocks were weaker with AIB down 51/2p to 3281/2p and Bank of Ireland down 3p to 430p. Smurfit lost 2p to 171p despite a slight strengthening overnight in New York.
After being starved of new issues of shares for the first half of the year, the market has now been hit with two rights issues worth almost £140 million in the space of two days. The Tullow rights issue continues to enthuse the market and the share was up again in heavy turnover in both Dublin and London and closed up 1p on 89p, not fur off its all time high.
A rights issue from Independent has been expected for months and the £109 million cash call should not unduly tax the market's ability to provide funds. Even though the shares are being issued on a prospective price/earnings ratio of 18 it is unlikely that underwriters Davy and Bankers Trust will be left with much stock on their hands.
Elsewhere, prices were mixed and, among the industrial holding companies, DCC was off 3p on 272p while another set of initials, IWP, was up another 5p to 525p.
Greencore lost 2p to 330p, Irish Permanent was 5p lower on 395p while Kerry drifted 2p lower to 648p.
