ISEQ falls for the third day in a row as banking shares slide
Friday October 23 2009
THE ISEQ fell for a third day, with bank stocks pushing the index to its lowest levels since September 9.
Shares elsewhere in Europe also had a bad day as investors speculated that China may curb stimulus spending after the nation's economy grew at the fastest pace in a year.
The ISEQ slid 71.03 points, or 2.2pc, to close at 3181.77. Allied Irish Banks fell 6.7pc to €2.49 while Bank of Ireland closed down 5.5pc at €2.57.
Other stocks to weigh on the exchange were Elan, which has fallen every day since it reported third quarter earnings earlier this week, and shares fell 10c, or 2.3pc to €4.30 yesterday.
Aer Lingus, which was told to "merge or die" by former chief executive Willie Walsh this week, closed down 1.7c, or 2.6pc, at 68c.
Bucking the trend was educational software company Thirdforce which soared 18pc to 9c after it announced a partnership to develop a new e-learning tool.
Icon which jumped €2.25, or 15pc, to €17.45 after it issued a broadly positive set of results the previous day and raised full-year forecasts.
Tullow Oil finished the day at a record high of €14 after reports that BP may buy a stake in the Tullow-operated Jubilee oil field in Ghana.
UK stocks tumbled, led by a sell-off in mining and energy companies.
Oil
Fresnillo, Antofagasta, and BP lost more than 2pc as copper and crude oil retreated from the highest in a year as the dollar strengthened against the euro, reducing demand for commodities as an alternative investment.
Lonmin declined after the platinum producer reported lower output.
Debenhams rose 1.1pc to close at 84p. The UK's second-largest department-store company reported a rebound in sales in the last seven weeks and posted a 23pc rise in profit as remodelled stores showcased its most-profitable clothing lines.
Indexes elsewhere in Europe also posted declines as sales fell. Swedish mobile phone maker Ericsson slumped 7pc after it posted a 71pc drop in third-quarter net income.
Air Liquide, the world's biggest producer of industrial gases; and Gemalto, the largest maker of smartcards, sank more than 2.7pc as sales declined.
Nestle, the world's largest food company, climbed 1.4pc after raising this year's buyback target and repeating its forecast that profitability will increase. Pernod Ricard advanced 2.3pc to €57.30 after it reported a smaller than expected sales decline and said demand for spirits shows "signs of improvement".
- Thomas Molloy
Irish Independent
