Markets drop after Draghi comments
Published 11/03/2016 | 02:30
Irish shares fell yesterday after European Central Bank president Mario Draghi indicated the ECB would not increase interest rates any further.
By the close in Dublin, the ISEQ Overall Index had slumped 1.49pc, or 93.78 points, to close at 6,189.41.
The market had been likely to go higher for most of the day. It surged immediately after the ECB cut its deposit interest rate to 0pc and increased its bond buying programme by a third to €80bn a month.
However the index went into reverse almost as soon as Mr Draghi began his press conference when he suggested the bank would not cut interest rates any further.
Hotel giant Dalata slumped 4.1pc to €4.25 even as the firm received clearance from regulators to buy the leasehold on four hotels.
Paddy Power Betfair dropped 1.7pc to €122.10. Former Paddy Power chairman Fintan Drury came out in favour of more government control over the betting industry in the UK.
Permanent TSB fell again, dropping 1.4pc to €2.76. The struggling lender's mortgage book is dominated by loans which track the ECB interest rate, so the firm will be disproportionately effected by the ECB rate cut.
Few stocks enjoyed a positive tradings session.
C&C jumped 4.4pc to €3.70 after the cider maker said profits were on course to match market forecasts this year.
Elsewhere, European markets dropped as Mr Draghi's comments negated the ECB's drastic action.
In London the FTSE 100 fell 1.8pc, while in Paris the CAC 40 slid 1.7pc. Germany's DAX Index tumbled 2.3pc.
All three indices were on course for gains until Mr Draghi started speaking.