Iseq tracks weakness in European stocks

The Irish market was down slightly this afternoon, tracking weakness throughout stocks in Europe.

The Irish market was down slightly this afternoon, tracking weakness throughout stocks in Europe.

By 1.17pm, the Iseq had slipped 18.30 points to 2,888.06.

Shares in insurance group FBD were up 5.9 per cent to €6.78 by 12.30pm today following an interim trading statement that said the group expected operating earnings per share for 2009 would be ahead of expectations.

However, other financial stocks did not perform as well. Irish Life and Permanent continued to feel the fall-out from Tuesday's trading statement that revealed higher loan losses than original anticpated. One trader said the ongoing weakness in the shares was down to analysts cutting forecasts in the wake of the trading update. By 12.30pm,

Bank of Ireland was down 1.8 per cent to €1.63.

AIB was also weak, falling 3.7 per cent to €1.71 by 12.30pm. The group yesterday released a trading statement that said loan impairment charges would be higher than previously guided, which sent shares into a mid-morning dip before closing 1.5 per cent higher at just under €1.78 yesterday evening.


Meanwhile, Datalex delivered a negative trading statement, which one Dublin trader described as a profit warning, sending its shares spiralling 8.1 per cent to 17 cent.

Revenue at the travel software firm slipped 19 per cent in the third quarter as continued difficult conditions in the travel industry impacted the business.

Shares in C&C, meanwhile, were down 2.4 per cent to €2.42. Traders said the shares were hampered by Nielsen data for the on-trade that may have been slightly weaker than the market was looking for.

Volumes were light in the market today, with investors appearing to be experiencing difficulty in mustering enthusiasm for investing in the Irish market.

European shares were lower for the third consecutive session, with food producers leading the losers after Danone cut its sales growth target.

The pan-European FTSEurofirst 300 index of top shares was down three quarters of a percent.

"I get the impression now there are an awful lot of people beginning to close their books and start minimizing risk before the holiday period," said Justin Urquhart Stewart, director at Seven Investment Management.

"Volumes are coming down, that may mean if we get any serious news, we could get a bit of volatility coming through."

Additional reporting - Reuters