Iseq:3,058.56 (- 35.38) Settlement date:October 30th
BANKING SHARES experienced what one trader described as a “catastrophic” session yesterday, as the overall Iseq index slipped 1.1 per cent on a quiet day’s trading.
AIBslid by 11.5 per cent to €2.10, with more than five million shares traded. Bank of Ireland dropped 10.2 per cent to €2.20, with about nine million shares changing hands.
Irish Life & Permanentalso experienced a tough day, finishing down 5.62 per cent at €5.37.
One trader said there had been “a vacuum of consistent aggressive selling among the financials”, but that it was difficult to put a finger on the exact cause of the sharp decline.
He said the level of clout the financials now carry in Dublin was demonstrated by the fact the Iseq only fell by about 1 per cent on a session that was disastrous for the banks but quiet elsewhere.
Another trader said a European Commission ruling on state aid, which will force financial group ING to be broken up, could have added to the slide and that discussion of the National Asset Management Agency (Nama) in the Dáil yesterday may also have been an influence.
Elsewhere, Smurfit Kappafell 4.7 per cent to €5.62. However, Davy Stockbrokers said in a briefing note that the paper and packaging market may have bottomed and that prices may increase. Other fallers included Ryanair, down 2.5 per cent to €3.11, and United Drug, which lost 2.2 per cent to finish on €2.20.
However, it wasn't all bad news, Among the food stocks, Kerry Groupfinished up 2.5 per cent, Glanbiarose by 1.5 per cent and Fyffeswas up 2.7 per cent to €0.38. The Iseq's biggest stock, building supplies group CRH, rose marginally to €18.30.
Elanrecovered some of the 20 per cent loss it endured in its share price on Friday gaining 3.11 per cent to finish at €3.65.
