Iseq pulls back after early morning plundering
Irish shares have recovered slightly from the early morning reaction to Britain's decision to leave the European Union.
Trading in the opening hours this morning saw the Iseq hit by as much as 12.73pc at one point with lots of Ireland's biggest firms bearing the brunt of the UK's referendum.
By lunchtime however shares on the Iseq had stabilised somewhat, clawing back three percentage points. At 12.50pm the Iseq was down 9.1pc.
Permanent TSB shares have recuperated some ground to stand at €1.80, down 18pc, an improvement on the 26pc hit it took in early morning trading.
Ryanair shares remain down 12pc to €12.03, while Kingspan is down 12.09pc to €22.06.
Bank of Ireland was amongst the worst casualties this morning, down 23pc. However, the share price has since moderated to 19.49pc off opening price.
The recovery mirrors that of the UK's where the FTSE has regained ground from the 8pc hit it took within the first few minutes of opening this morning.
However, following Bank of England governor Mark Carney's pledge that the bank would provide a quarter of a trillion pounds to support the market, shares in the UK's main index have stabilised somewhat.
The FTSE is now down 4.3pc, a significant improvement from the early horror show.
Massive falls on world currency and share markets in the wake of the UK referendum means billions of euro in paper losses for investors.
Crucially for many people that includes a hit for pensions funds and insurers, who will struggle to make back losses if the declines are sustained.
That could put pressure on future pension payouts - though if the volatility is short term that possibility will fade. Insurers already struggling to balance their premiums and investment returns against payouts, will also some under pressure.
"The market just hadn't priced in vote to leave by the time voting closed, although last week many players probably had," said Ryan McGrath of Cantor Fitzgerald.
Bond markets, which dominate many investment portfolios are so far shrugging off the worst of any panic swings.
The yield, or return investors demand for holding Irish ten year bonds is little changed today compared to the middle part of last week, and traders say many market players are sitting out the current volatility.