The Dublin market was dragged down by poorly performing financial and construction stocks today, falling by 3.7 per cent or by 169.71 points to close the day at 4401.01.
In the US, the announcement from JP Morgan on Tuesday evening that it would write-off $1 billion in mortgage-backed securities, sent financial stocks on a downward slide, leading their European and Irish counterparts to follow suit.
Worst hit was Irish Life & Permanent, which fell by 8.1 per cent, or €50 cents, to €5.66. Bank of Ireland also performed very poorly, falling by 6.2 per cent, or by 38 cents, to close the day at €5.72.
AIB fell by 3.7 per cent, down by 33 cents to €8.53.
Despite releasing a very positive trading statement, in which it declared that its earnings would rise by 15 per cent in 2008, Anglo Irish Bank suffered from the overall malaise in the financial sector, dropping by 17 cents to close the day down 2.8 per cent to €5.85, in a day of heavy trading for the stock.
Goodbody Stockbrokers sent Kingspan into a tailspin when it slashed its earnings forecasts for the company for both 2009 and 2010. The stock fell by 8 per cent in early morning trading, but recovered somewhat to close the day down 6.2 per cent, or by 47 cents, to €7.13.
Grafton Group also suffered, dropping by 19 cents, or by 4.3 per cent, to finish the day at €4.20, while CRH fell by 95 cents, or by 5 per cent, to €17.93.
As investors looked to defensive stocks, food stocks performed well. Kerry Group was up by 2.9 per cent, or by 55 cents, to €19.85, while IAWS closed up by almost 1 per cent, or by 10 cents, to €16.00, as it benefited from a continued weakening in commodity prices.
Airlines again suffered from rising oil prices and Ryanair fell back by 24 cents or by 8.3 per cent to €2.67.
In the UK, new data for July revealed that unemployment is at levels last seen almost 16 years ago, which, when combined with poorly performing financial stocks, saw the FTSE 100 fall back by 1.4 per cent.
In Europe, stocks fell by the most in a month, amidst fears that the worst of the credit crisis has not yet passed and that more bank losses are to come. In Paris the CAC fell by 2.4 per cent while in Frankfurt the DAX closed the day down 2.5 per cent.
In the US, stocks fell for the second day in a row, as Merrill Lynch announced that the turmoil resulting from the credit crisis is far from over. By 11.24 am, the Dow Jones had fallen by 0.9 per cent, or by 11.39 points, to 1,278.2.
