Financial stocks endured a torrid day’s trading today, helping to drag Iseq down 2.6 per cent, or 153 points, to 5,654 by 4.30 pm.
Irish banks took their lead from their UK counterparts which were also under pressure throughout the day on the back of news that US investment bank Lehman Brothers is raising $6 billion to boost its finances after predicting a loss in the second quarter of 2008.
Irish Life & Permanent bore the brunt of the sell-off among financial stocks on the Iseq. It was down 5.5 per cent, or 56 cents, at €9.50. Anglo Irish Bank dropped back 37 cents, or nearly 5 per cent, to €7.13, while AIB shed 34 cents to €11.70. Bank of Ireland was 2.5 per cent weaker at €6.82.
Elsewhere, Ryanair along with many other airlines was suffering a hangover from the surge in oil prices last Friday and the stock was around 4.8 per cent weaker at €2.87 with four million shares traded.
Construction stocks were also under pressure as the Ulster Bank as the construction purchasing managers’ index showed a sharp decline for May. Kingspan shed 19 cents to €5.93, while CRH was 49 cents weaker at €21.83.
On a positive note, food group IAWS enjoyed a good day on the back of its confirmation that it had agreed to merge with its Swiss peer Hiestand. The stock opened positively at the €17 mark, but drifted off a little in late afternoon trading. However, it still managed to end up 32 cents stronger at €16.50 with more than 400,000 shares traded.
European stocks declined for a fourth day as investors speculated banks losses will increase and near-record oil prices will curb economic and profit growth.
National indexes retreated n 15 of the 18 western European markets. France’s CAC 40 added 0.1 per cent and Germany’s DAX increased 0.2 percent. The UK’s FTSE 100 slipped 0.5 percent.