DUBLIN REPORT: Iseq:2,825.95 (–65.62) Settlement date:January 25th
EUROPEAN STOCKS fell for a second consecutive day following a rally earlier in the week despite positive employment data and corporate earnings from the US, as China’s rising inflation stoked concerns about rising interest rates.
Ireland mirrored the global trend, finishing off 66 points at 2,826, with virtually all stocks ending the day in negative territory.
Aviation stocks were the main talking point after easyJet warned that its half-year losses could double mainly due to the rising cost of fuel as well as the impact of weather disruption.
Despite the fact that most of its hedging has been done for the year, Ryanair lost a hefty 6.5 per cent, as concern about the impact of rising oil prices on earnings the following year weighed on sentiment. The stock finished at €3.49.
Aer Lingus was also down, losing 3.7 per cent to finish at €1.04, as the combination of rising oil prices and the ongoing strikes at the airline affected the carrier.
Elsewhere, the banks were relatively stable, although they did not partake in the more general boost experienced by European financials.
On a day when most stocks fell, Bank of Ireland managed to chalk up 0.8 per cent to €0.36. As AIB enjoyed its final few days on the main stock exchange, it lost 4 per cent to €0.27. Irish Life and Permanent, which rallied on Wednesday, fell 1.2 per cent to finish at €0.85.
Building materials company CRH boosted by strong data from the US added 0.37 per cent to €14.79.
Kenmare Resources – which had been trading at highs of €0.41 – fell back in afternoon trading to close at €0.31, an 18 per cent drop on the day, despite its announcement that production at its Moma titanium mine in Mozambique rose in the second half of 2010.
