ISEQ underperforms FTSE as shock continues to rock the exchanges
Published 03/07/2016 | 02:30
The ISEQ index of Irish shares posted further losses as the repercussions of the UK's vote to leave the European Union continued to unfold.
The index closed the week down 2.18pc at 5,749.96, its lowest Friday close since February last year.
The ISEQ lost almost 8pc on Friday, June 24 after the Brexit result, and this week it underperformed the FTSE 100, which closed higher on Friday than it was on the day before the referendum was held.
BoI, Dalata and Kingspan, each with significant exposure to the UK, were the biggest laggards of the Friday-to-Friday period in Dublin, losing 34.2pc, 26.1pc and 23.9pc respectively.
Kerry and Glanbia were among the few companies who posted weekly gains, up 1.7pc and 0.4pc. Irish 10-year bond yields hit a record low during the week, with analysts saying the fall was due to expectations that the ECB would do more to stimulate the European economy after the Brexit vote.
The FTSE 100 ended June as the best performer among developed markets tracked by Bloomberg. The weakening of the currency and Bank of England governor Mark Carney's reassurance that the bank is ready to loosen policy pushed the gauge to its highest level since August. The FTSE 100 rallied 7.2pc in the week, its biggest jump since 2011, as it surged 10pc in four days.
Meanwhile, the Stoxx Europe 600 Index added 0.7pc on Friday, capping its biggest weekly gain in a month.
Shares extended gains on Friday after Michael Gove, in the fray to become the next prime minister, said he does not expect the formal mechanism for leaving the EU to be triggered this year. Home Secretary Theresa May, the bookies' favourite to replace David Cameron, has said the same.
Additional reporting by Bloomberg
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